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After an investigation in Spain on the violation of the law on market competition, Booking.com is now under surveillance in Italy as well.
As we already wrote, Booking.com is facing a hefty fine of 530 million dollars imposed by the Spanish authorities.
The fine, issued by Spain's National Market and Competition Commission (CNMC) during the fourth quarter of last year, relates to allegations of violation of the law on market competition by this prominent online travel agency and accommodation provider.
/ / / Booking.com faces a $530 million fine from Spanish authorities
Today, the Italian competition agency announced that according to their interpretation, Booking is implementing a strategy aimed at reducing the freedom of Italian hotels in setting prices for online sales channels. This strategy is likely to result in foreclosure effects in the market for online hotel brokerage and reservation services.
The Italian Competition Authority (AGCM) has opened an investigation into Booking.com to determine the alleged abuse of its dominant position in the market of online intermediation and reservation services, in violation of Art. 102 of the UFEU.
More precisely, according to the Agency, Booking gives hotels that join the Preferred Partner program (and its extension Preferred Plus) advantages in terms of the visibility of their offer in search results, in exchange for higher commissions and the obligation to offer "competitive" prices on Booking.com. that is, prices that are not higher than those applied by hotels on their own websites or platforms of other online travel agencies (so-called OTAs).
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Meanwhile, when its capillary and sophisticated monitoring activity reveals that a hotel partner offers better prices on other online channels, Booking reserves the right to apply, without the consent of its hotel partners, a discount (so-called Booking Sponsored Benefit) in order to match the prices on its platform with the best available online offer.
"This strategy is likely to prevent the development of effective competition in the national market for online hotel brokerage and reservation services, i.e. to the detriment of other OTAs, with negative effects on hotels and ultimately consumers, in terms of higher prices and less choice for brokerage services and reservations", according to the AGCM.
Yesterday, AGCM officials inspected the premises of Booking.com (Italia) Srl, with the help of the Special Antimonopoly Unit of the Italian Financial Police (Guardia di Finanza), and we are following the course of the whole situation.
Photos: John schnobrich / Unsplash
