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German Court Orders Booking.com to Compensate Hotels in Competition Law Case

By  |  December 17, 2025

Booking.com must pay damages to more than 1,000 hotels in Germany after a Berlin court concluded that the travel booking platform violated European competition rules, according to a statement.

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    The Berlin Regional Court found that Booking.com’s use of price parity clauses unlawfully constrained competition by limiting how hotels could set prices. Per a statement, these clauses required accommodation providers to offer the same room rates on Booking.com as on their own websites or other online travel agencies, preventing hotels from undercutting prices elsewhere.

    The court ruled that such arrangements breached Article 101 of the Treaty on the Functioning of the European Union, which prohibits agreements that restrict competition within the EU. According to Reuters, the judges rejected the company’s claim that the clauses were necessary to protect its business model, finding they did not qualify as acceptable ancillary restraints under EU law.

    The ruling is the latest development in a long-running dispute between hotels, online booking platforms and competition regulators. Per a statement, it builds on action taken by Germany’s Federal Cartel Office in 2015, when the authority ordered Booking.com to abandon the clauses, a decision that was later confirmed by Germany’s top civil court in 2021.

    Read more: Texas Reaches Settlement With Booking Holdings in Junk Fee Case

    Although the judgment directly affects only hotels in Germany, it is expected to influence the wider European hospitality market. According to Reuters, the decision reinforces regulatory limits on parity pricing practices used by online travel agencies across the region.

    Price parity clauses have been a persistent source of conflict in the sector, with hotel operators arguing that they weaken pricing freedom and reduce incentives for customers to book directly, per Reuters.

    Booking.com responded by saying it was satisfied that the court had dismissed some claims while maintaining its broader position on the issue. The company said: “We are pleased the Berlin Court has upheld key aspects of our case and dismissed some of the claims today. We maintain that our past use of parity clauses, which have not been used in Germany since 2016, did not infringe competition law and that they benefitted travelers and partners by fostering competition. We remain proud of our role enabling a vibrant European tourism sector, and we will continue helping our partners support and drive growth in local economies across the continent.”

    Source: Travel Weekly