Booking.com, the dominant player in European hotel reservations, faces mounting regulatory challenges as Italy becomes the latest country to investigate the company for potential abuse of its market position. The Italian Competition Authority (AGCM) has initiated a probe into Booking's practices, examining whether they unfairly impact hotels and rival online travel agencies.
This follows Spain's decision in February to impose a hefty €486 million fine on Booking.com for abusing its dominant position. Booking.com acknowledged the Italian investigation in its recent quarterly results, noting that it could lead to significant fines and operational restrictions if found in violation of Italian law.
Booking.com's legal hurdles extend beyond Spain and Italy. The Swiss Price Surveillance Office has been investigating the company since 2017 over potentially excessive commissions charged to hoteliers. Additionally, Poland's Competition and Consumer Protection Office is examining Booking.com (along with Zalando and Travelist) for alleged non-compliance with consumer information directives.
Central to these disputes are concerns about Booking.com's high commissions and their potential impact on fair competition for hotels. Spanish hoteliers, in particular, have long argued for a more equitable commission structure that takes into account the size of the establishment and its reliance on the platform.
