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Booking, Antitrust beacon for alleged abuse of dominant position: here are the accusations

Booking ends up in the crosshairs of the Antitrust: the hotel and tourism services platform would offer greater visibility in exchange for higher commissions to the structures of the "Preferred Partners" program

Booking, Antitrust beacon for alleged abuse of dominant position: here are the accusations

THEAntitrust has initiated investigative proceedings against Booking.com (Italy), Booking.comBooking.com International to ascertain an alleged abuse of dominant position in the market of online intermediation and booking services hotel facilities, in violation of Article 102 of the TFEU (Treaty on the Functioning of the European Union).

Booking, what the Antitrust says

In particular, explains the note, Booking would give the hotel structures that are part of the "preferred partners" program (and its "preferred plus" extension) advantages in terms of visibility of their offer in the search results, compared to higher commissions and the commitment to offer 'competitive' prices on Booking.com, i.e. no higher than those that the facilities apply on their own website or on the platforms of other online travel agencies.

At the same time, when it finds, as a result of extensive and sophisticated monitoring, that a facility offers better prices on other online sites, Booking reserves the right to apply, without the facilities' consent, a discount (the so-called Booking sponsored benefit) to align Booking.com's offer with the best among those available online.

As a whole, this strategy seems suitable, says the Antitrust, ad hinder effective competition in the market, at least nationally, of online hotel intermediation and booking services, to the detriment of other OTAs (online travel agencies) with negative effects on accommodation facilities and, ultimately, on consumers in terms of higher prices and less choice in online intermediation and booking services. Yesterday, the Authority officials carried out inspections in the offices of Booking.com (Italy), with the help of the special Antitrust unit of the Guardia di Finanza.

Booking, the reply after the inspections

“We can confirm that we are fully cooperating with the Guardia di Finanza and the Competition and Market Authority, who carried out inspections in our offices in Italy yesterday”. Thus Booking.com in a note following the Antirust decision to open an investigation for alleged abuse of a dominant position.

Booking: 1 billion bookings in 2023

Over 1 billion nights booked via the platform (+17%) in 2023 with group profit rising by 40% to 4,3 billion dollars. These are some of the main numbers of the online booking giant Booking as can be seen from the data released last February. Results obtained despite the penalty imposed in Spain of the Antitrust Authority for 530 million for which the group has appealed.
The total of revenues of the group rose to 21,4 billion (out of a total of 150,6 billion in value of bookings) with a growth of gross operating margin by 34% a 7,1 billion. A positive trend for the sector that the company says it is confident it can continue in the long term, the CEO underlined in the statement on the accounts Glenn Vogel.

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