AMSTERDAM – More than 10,000 hotels across Europe have joined a landmark class-action lawsuit against Booking.com. They accuse the platform of imposing best-price (rate-parity) clauses for two decades—agreements that prevented hotels from offering lower prices on their own websites or other channels—limiting competition and inflating costs. The lawsuit seeks compensation for losses from 2004 to 2024, during which Booking.com enforced these restrictive pricing terms.

ECJ Ruling and the Digital Markets Act

The legal challenge stems from a September 2024 ruling by the European Court of Justice (ECJ), which found such clauses violated EU competition rules. The court emphasized that platforms like Booking.com can operate without such restrictions. Following this verdict and the implementation of the EU Digital Markets Act (DMA), Booking.com removed these clauses across the European Economic Area (EEA) in 2024.

 United Front for Fair Digital Practice

The action is coordinated by the Hotel Claims Alliance, supported by HOTREC (the European hotel federation) and more than 30 national hotel associations, including the German IHA. Industry leaders spoke out against what they see as abusive market behavior. HOTREC President Alexandros Vassilikos said hotels have long suffered from unfair conditions, while IHA’s Markus Luthe reported overwhelming support for the lawsuit. The legal action is being filed in the Dutch courts (Amsterdam)—where Booking.com is headquartered—and the registration deadline for hotels to join has been extended to 29 August.

Booking.com Remains Powerful

Despite the backlash, Booking.com continues to dominate the European online hotel market, with an estimated 71% share of bookings in 2023—and 72.3% in Germany. During the same period, direct bookings declined by about eight percentage points.

Reshape digital platform competition

Successfully navigating this class-action could reshape digital platform competition in Europe, serving as a test case for other sectors reliant on ‘best-price’ constraints. However, the plaintiffs will face complex challenges in quantifying damages and defining market impacts—making this a critical and closely watched legal battle.  (zai)