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Booking.com scrapped the clause, when it was deemed illegal in court last year, but now hotels all over Europe wants what they think they’re owed.
Booking.com scrapped the clause, when it was deemed illegal in court last year, but now hotels all over Europe wants what they think they’re owed.
What is happening?
A massive coalition of more than 10.000 hotels across Europe has banded together to launch legal action against Booking.com, accusing the travel giant of unfair practices, news agency dpa reports.
The controversial clause
At issue is Booking.com’s long-standing policy that prevented hotels from undercutting its listed prices on their own platforms.
While meant to stop “free-riding” — where travelers find a hotel on Booking.com but book directly — hotels argue the clause stifled competition and limited consumer choice.
European Court ruling sparks legal momentum
The hotels’ case hinges on a pivotal European Court of Justice ruling from September 2024.
The court found that these pricing restrictions are illegal and that online platforms like Booking.com can operate fairly without them.
Digital Markets Act forces a shift
Following pressure from the EU’s new Digital Markets Act in 2024, Booking.com officially scrapped its best-price clauses in Europe.
However, hoteliers argue the damage from two decades of restrictions has already been done and are now seeking financial compensation.
Industry leaders rally behind the lawsuit
Alexandros Vassilikos, president of HOTREC — the voice of Europe’s hospitality sector — called the legal action a “clear message” to digital platforms.
“For too long, hoteliers have faced excessive costs and unfair rules,” he stated,.
20 years of losses
The class-action lawsuit aims to recover damages for the period between 2004 and 2024.
Supporters argue that hotels have lost millions in revenue due to artificially inflated pricing structures imposed by Booking.com’s contract terms.
Dutch courts to hear the case
Although this is a Europe-wide effort, the legal proceedings will unfold in the Netherlands — home to Booking.com’s headquarters in Amsterdam.
The case is being coordinated by the Hotel Claims Alliance and has backing from over 30 national hotel associations.
Booking.com still a key player
Despite the criticism, many hoteliers acknowledge that Booking.com remains vital to their business.
It provides unparalleled access to a global audience — a visibility few individual properties could achieve on their own.
Dominant market share fuels concern
According to a 2023 study by HOTREC and a Swiss hospitality school, Booking Holdings commanded a staggering 71% share of the European online travel agency market.
Meanwhile, direct hotel bookings have declined steadily, tightening the platform’s grip on the industry.
A battle over power
At its core, this case is about rebalancing power between global tech platforms and local businesses.
European hotels are hoping the courts will not only grant compensation but also set a lasting precedent against monopolistic behavior in the digital economy.
