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Spain’s Antitrust Watchdog Slaps Booking.com with €413.2 Million Fine for Market Abuses

By  |  July 30, 2024
Spain’s Antitrust Watchdog Slaps Booking.com with €413.2 Million Fine for Market Abuses

Spain’s antitrust regulator, the CNMC, has levied a hefty fine of €413.2 million ($448 million) against online reservation giant Booking.com. The penalty is a result of the company’s alleged abuse of its dominant market position over the past five years.

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    According to Reuters, the CNMC announced on Tuesday that it is imposing two separate fines of €206.6 million each on Booking.com, a subsidiary of Booking Holdings, which is listed on the New York Stock Exchange. The watchdog stated that since 2019, Booking.com has leveraged its significant market share, ranging from 70% to 90%, to enforce unfair conditions on hotels and stifle competition from other service providers.

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    Booking Holdings has expressed strong disagreement with the CNMC’s findings and plans to challenge the fines. A spokesperson for the company conveyed via email that they believe the matter should be addressed under the European Union’s Digital Markets Act rules and intend to appeal the decision in Spain’s high court.

    Related: EU Extends Deadline For Booking Holdings’ Acquisition Decision

    The investigation by CNMC was triggered by complaints filed in 2021 by the Spanish Association of Hotel Managers (AEDH) and the Madrid Hotel Business Association. Per Reuters, the regulator found that Booking.com prohibits hotels from offering lower prices on their own websites compared to those listed on Booking.com. Additionally, the company unilaterally imposes price discounts on hotel rooms without consulting the hoteliers.

    Further complicating matters for Spanish hotels, the CNMC highlighted that Booking.com requires them to resolve conflicts in the Netherlands, where the company is headquartered. This practice, coupled with the benefits offered to hotels that generate higher fees for Booking.com, has significantly limited the ability of alternative service providers to attract hotel partnerships.

    The ruling by the CNMC aims to curb these anti-competitive practices and promote a fairer marketplace for hotels and other booking platforms in Spain.
    Source: Reuters