Hotel associations from more than 25 European countries have initiated a large-scale legal case against online travel platform Booking.com, challenging its use of rate parity clauses that allegedly restricted competition and inflated commission fees.
The coordinated lawsuit follows a recent ruling by the European Court of Justice (ECJ) that deemed such clauses unlawful under EU competition law.
Background of the legal challenge
Since the early 2000s, Booking.com enforced contractual terms known as rate parity clauses. These provisions prevented hotels from offering lower prices on their own websites or other distribution channels, effectively forcing them to maintain uniform pricing on the platform.
Hotels argue this practice limited their autonomy, raised operational costs through higher commissions, and suppressed price competition.
The ECJ ruling on 19 September 2024 confirmed that these clauses breached European competition regulations by restricting fair competition and disadvantaging smaller independent hotels.
The court found that Booking.com’s policies hindered pricing transparency and consumer choice, setting the stage for collective legal action.
Scope and organisation of the pan-European lawsuit
The lawsuit involves national hotel associations from Austria, Belgium, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, and Switzerland.
This broad coalition reflects the extensive impact of the platform’s pricing practices across the continent.
A dedicated legal body has been established to coordinate the claims, with the Netherlands chosen as the jurisdiction for the centralised proceedings. Eligible hotels that paid commissions to Booking.com between 2004 and 2024 can join the collective action by registering through a streamlined legal platform.
The process aims to reduce litigation costs and facilitate compensation claims for overpaid commission fees plus accrued interest.
Implications for the European hospitality sector and digital marketplaces
This legal action highlights growing concerns over the market power of online travel agencies and digital platforms in the hospitality sector.
By challenging restrictive pricing clauses, hotels seek to regain control over their pricing strategies and improve competitiveness.
Industry representatives emphasise that fair competition among booking channels benefits both consumers and service providers by promoting transparency and innovation.
The ECJ decision and subsequent lawsuit may influence other digital marketplaces employing similar pricing restrictions.
Regulators across Europe are increasingly scrutinising platform practices to ensure compliance with competition laws and to foster a more balanced digital economy.
As the European hospitality industry recovers from recent disruptions, the outcome of this case could set a significant precedent.
It underscores the importance of protecting independent businesses against anti-competitive agreements and ensuring fair conditions in online hotel booking markets.
