Booking.com platform, sued by over 10,000 hotels in Europe

More than 10,000 hotels in Europe want to open a joint court action against Booking.com, based in Amsterdam, seeking compensation for losses incurred as a result of the booking platform's use of the so-called "lowest price clause", DPA reports, according to Agerpres.

The clause, which prohibits hotels from offering rooms on their own sites at a lower price than on Booking.com, is perceived as illegal by hoteliers. The platform wanted to avoid customers who checked prices on Booking.com and then made reservations on the hotels' sites.

The hotels cite the decision of the European Court of Justice (CJEU) of September 19, 2024, which establishes that the "lowest price clause" is illegal.

Platforms such as Booking.com can operate without such regulations, the CJEU ruled.

Following the EU's adoption of the Digital Markets Act (DMA) in 2024, Booking.com removed the clause in Europe.

"European hoteliers have suffered for too long from unfair conditions and excessive costs. Now is the time to come together and demand compensation,” said Alexandros Vassilikos, President of the hospitality industry association HOTREC, adding: "The joint initiative sends a clear message: abusive practices in the digital marketplace will not be tolerated by the hospitality industry in Europe.”

Through the class action, hoteliers are seeking compensation for damages incurred between 2004 and 2024. The joint legal action, supported by HOTREC and over 30 national hotel associations, will take place in a court in the Netherlands.

According to a study conducted by HOTREC and the Swiss Hoteliers' Association, Booking Holdings had a 71% market share in Europe in 2023, but in recent years the share of direct bookings has decreased considerably.