Spanish antimonopoly agency CNMC has fined Booking.com for abusing dominant regulations in the market over the past 5 years. The investigation was initiated in October 2022 following complaints from the Spanish Association of Hotel Managers and the Regional Association of Madrid hotels. CNMC discovered that Booking.com was imposing unfair conditions on hotels, thereby distorting competition.
Booking.com held a market share ranging from 70% to 90% in online bookings in Spain. Since January 1, 2019, the company has exploited its dominant position by imposing unjust conditions that limited competition from other agencies. One of the key allegations was that Booking.com prohibited hotels from offering lower room rates on their own websites compared to Booking.com. In contrast, the platform retained the unilateral right to decrease prices.
Other violations highlighted by CNMC included stipulations that only the English version of contracts was legally binding, with jurisdiction in the Netherlands, where Booking.com is headquartered. Such terms complicated legal disputes for Spanish hotels. Transparency concerns were also raised regarding subscription services that allowed hotels to improve their ranking on the platform by paying higher commissions or offering discounted rates.
Additionally, Booking.com used the total number of reservations made through the platform as a determinant for ranking hotels in search results, incentivizing hotels to focus their bookings exclusively on Booking.com to the detriment of other similar services. Hotels had to meet specific requirements based on their profitability for Booking.com to participate in subscription programs, influencing their pricing strategies to align with Booking.com’s interests.
The fine imposed on Booking.com totaled €413.24 million, encompassing penalties for unfair conditions and anticompetitive behavior. In addition to the financial penalty, Booking.com was mandated to cease unlawful practices and prevent their recurrence.
Booking.com has expressed dissatisfaction with the investigation’s findings and plans to challenge the decision in the National Court within two months. The company emphasized its commitment to a competitive market environment, highlighting support provided through Preferred Plus and Genius programs. Booking.com contends that CNMC’s ruling introduces confusion for consumers and partners in Spain.
Moreover, Booking.com anticipates increased regulation under the Digital Markets Act (DMA) that will come into effect by mid-November, imposing strict adherence to new regulations. Violations may incur fines of up to 10% of the company’s global annual turnover, with higher penalties for repeated offenses.