Booking.com Fined Over $447M By Spanish Regulator: Report

Travel technology firm Booking Holdings Inc BKNG has been fined €413.2 million ($447.1 million) by Spain's competition regulator, CNMC.

What Happened: The CNMC stated that, since early 2019, Booking.com imposed several unfair conditions on Spanish hotels using its platform, reported the Wall Street Journal.

These conditions included prohibiting hotels from offering lower room prices than those listed on Booking.com, while the platform retained the right to reduce room prices unilaterally.

Additionally, the regulator noted that the company required hotels to settle legal disputes under Dutch law, leading to higher litigation costs for Spanish hotels.

The investigation was initiated following complaints in 2021 by industry groups including the Spanish Association of Hotel Directors and the Hotel Business Association of Madrid.

Also Read: Booking Holdings Teams Up With Visa to Aid Diners

Why It Matters: The CNMC's ruling mandates several changes that Booking must implement to ensure fair competition in the market.

With a market share between 70% and 90% in Spain, Booking was found to have restricted competition from other online travel agencies.

The CNMC highlighted that the platform ranked hotels based on their bookings through Booking.com, thereby encouraging hotels to rely exclusively on its services for online bookings. This practice was deemed to stifle competition and limit consumer choices.

A spokesperson for Booking Holdings said, “We strongly disagree with the outcome of the CNMC investigation,” emphasizing that the EU's Digital Market Act should address these issues on a broader European level rather than on a country-by-country basis.

Price Action: BKNG shares closed higher by 0.91% at $3,720.99 on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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