business
Mass Lawsuit Hits Booking.com Over Years of Commission Abuse
Hotel operators from more than 30 countries unite under collective action to recoup losses allegedly caused by illegal pricing rules—following a decisive 2024 ECJ ruling and under the coordination of Hotel Claims Alliance and HOTREC.
When Andrea Müller booked a room directly through her hotel’s website in 2018—only to find it priced higher than on Booking.com—she thought it was a glitch. Little did she know it reflected a systemic imbalance: for two decades, hotels across Europe were legally barred from offering lower rates on their own platforms. That leverage of power, finally condemned by Europe’s top court, now fuels a push for justice by more than 10,000 operators demanding compensation.
What’s Happening
- Scope of the Action: Over 10,000 hotels across Europe have joined a collective lawsuit, coordinated by the Hotel Claims Alliance with support from HOTREC and more than 30 national associations.
- Legal Basis: The action is based on a 19 September 2024 ECJ ruling that declared Booking.com’s “best‑price” (rate parity) clauses illegal under EU competition law.
- Period Covered: Damages are sought for the period from 2004 to 2024, reflecting years of restricted autonomy for hotel operators.
Background & Legal Context
Booking.com first introduced wide parity clauses in 2004, later narrowing them in 2015—but still prevented hotels from offering lower rates on their own platforms. The ECJ found both versions violate EU law, as they suppress competition, harm smaller platforms, and block consumer choice.
In 2024, under the Digital Markets Act (DMA), Booking.com eliminated these clauses across the EU, opening the door for collective damages claims.
Human Impact & Economic Stakes
For small and mid-sized hoteliers like Müller, high commission fees (often 12–18 %) significantly erode margins. Spanish and German hoteliers report that hotels receive only €83–87 per €100 booking due to excess fees and suppressed direct sales.
Alexandros Vassilikos, president of HOTREC, underlined the collective grievance:
“European hoteliers have long suffered from unfair conditions and excessive costs. Now is the time to stand together and demand redress.”
Broader Significance
This lawsuit marks a major shift in platform regulation and industry pushback:
- Market Power Rebalanced: A precedent for holding gatekeeper platforms accountable under EU competition rules.
- Empowering SMEs: Smaller hotels gain legal footing to claim compensation without prohibitive costs, thanks to collective action frameworks coordinated in the Netherlands.
- Regulatory Momentum: Follows other actions like Spain’s €413 million antitrust fine against Booking.com in 2024 for similar breaches.
What’s Next?
- Legal Proceedings: The central lawsuit will be heard in a Dutch court, the jurisdiction where Booking.com is headquartered. Registration for hotels remains open until 29 August 2025.
- Potential Compensation: Preliminary estimates suggest hotels might reclaim up to 30 % of total commissions paid over two decades, plus interest.
- Ongoing Debate: Booking.com disputes the broader applicability of the ECJ ruling, stating it pertains narrowly to past German cases and does not establish general anti‑competitive conduct