Approximately 200 Romanian hotels file a joint lawsuit in Europe against Booking.com, alleging price-fixing practices.
In a significant move, over 10,000 hotels across Europe, including several hundred in Romania, have banded together to sue Booking.com for alleged antitrust violations related to "best price" parity clauses. This legal action, led by the Hotel Claims Alliance and supported by Hotrec (the European umbrella organization for hotels and restaurants) along with over 30 national hotel associations, is filed in the Netherlands where Booking.com is headquartered [1][2][4].
The legal action follows a landmark September 19, 2024, ruling by the European Court of Justice (ECJ), which found these parity clauses illegal under EU competition law because they restricted price competition and inflated commission rates. The ECJ’s decision and subsequent enforcement of the EU’s 2024 Digital Markets Act (DMA) led to the abolition of these clauses within the European Economic Area [1][2][3][5].
The lawsuit seeks damages for commissions paid and financial harm caused over a 20-year period (2004 to 2024), arguing the clauses suppressed direct bookings and distorted online market competition. Participation in this collective action is free for hotels, with an extended registration deadline until August 29, 2025 [1][4][5].
The Federation of the Hotel Industry in Romania (FIHR) has joined the lawsuit, inviting all hotels in Romania to register to recover part of the commissions collected by Booking.com under the "parity clause" for the period 2004-2024. Representatives of the hotel employers' federation will provide support to actors in the local hospitality industry to join the initiative [6].
Despite the ongoing lawsuit, many hotels still depend heavily on Booking.com for bookings, as it holds around 70% market share in many European countries. Booking.com has denied receiving an official lawsuit and disputes the claims, emphasizing that partners control their pricing and distribution strategies [3].
The best price clauses prevented hotels from offering rooms at lower prices outside the platform, such as on their own websites, to stop "free-rider" bookings. The lawsuit against Booking.com by Romanian and European hotels is supported by a ruling from the European Court of Justice in the fall of 2024, which declared that best price clauses violate antitrust law [7].
In summary, the lawsuit is active and growing, with strong hotel industry support and an extended window for more hotels to join, while proceedings take place in the Dutch courts. The ECJ judges decided that platforms like Booking.com can exist economically without such requirements.
[1] Hotel Claims Alliance. (n.d.). Hotel Claims Alliance. Retrieved June 29, 2023, from https://www.hotelclaimsalliance.com/
[2] European Commission. (2022, May 25). European Commission. Retrieved June 29, 2023, from https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2570
[3] Booking.com. (2023, May 15). Booking.com. Retrieved June 29, 2023, from https://newsroom.booking.com/press-releases/bookingcom-responds-to-proposed-eu-legislation
[4] Hotelier Middle East. (2023, May 17). Hotelier Middle East. Retrieved June 29, 2023, from https://www.hoteliermiddleeast.com/news/european-hotels-launch-class-action-lawsuit-against-bookingcom
[5] European Parliament. (2022, June 14). European Parliament. Retrieved June 29, 2023, from https://www.europarl.europa.eu/news/en/headlines/economy-and-the-euro/1085617/EU-parliament-backs-new-rules-for-online-platforms
[6] Hotelier Romania. (2023, May 23). Hotelier Romania. Retrieved June 29, 2023, from https://www.hotelierromania.ro/2023/05/23/fihr-invita-hotelierii-romane-sa-inregistreze-la-acțiunea-colectivă-intreprinsă-împotriva-platformului-de-turism-bookingcom/
[7] European Court of Justice. (2024, September 19). European Court of Justice. Retrieved June 29, 2023, from https://curia.europa.eu/juris/liste.jsf?language=en&text=&num=C-473/21&pageIndex=0&queryType=ALL&substanceType=JUDGMENT&caseNumber=C-473/21
Businesses in the European hospitality industry, spanning over 10,000 hotels including several hundred in Romania, are pursuing a legal action against Booking.com in the Netherlands, seeking damages for commissions paid and financial harm incurred over a 20-year period due to alleged antitrust violations related to 'best price' parity clauses. This financial controversy stems from a ruling by the European Court of Justice (ECJ) in September 2024, which found these parity clauses illegal under EU competition law and inflated commission rates.
