EU New Regulations for Booking.com: What is Changing for Businesses

Booking.com’s compliance with the DMA marks a pivotal moment for digital market regulation in the EU. By leveling the playing field, the DMA seeks to empower smaller businesses and provide consumers with more options and better prices. Stakeholders across the industry will be watching closely to see how these changes unfold and impact the broader digital ecosystem.

By eEuropa
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BRUSSELS, November 18, 2024 – 4 MINUTES READ

As of today, Booking Holdings Inc. (BHI), the parent company of Booking.com, must comply with the European Union’s Digital Markets Act (DMA) following its designation as a “gatekeeper” on May 13, 2024.This new status brings significant changes to how Booking.com operates, aiming to foster fair competition and provide more opportunities for businesses and consumers alike.

What This Means for Hotels and Travel Service Providers

Hotels, car rental companies, and other travel service providers that rely on Booking.com to reach customers will experience several important changes:

1. Elimination of ‘Parity’ Clauses: The DMA prohibits so-called “parity” clauses. This means that service providers are now free to offer different—or even better—prices and conditions on their own websites or other channels compared to those listed on Booking.com. Previously, parity clauses restricted businesses from offering lower prices elsewhere, limiting competition.
2. No Retaliatory Measures: Booking.com cannot introduce measures that effectively replace parity clauses. For example, the platform is not allowed to increase commission rates or de-list offers if a business user provides different prices on another website. This change enables other platforms and travel service providers to compete under fairer conditions, potentially leading to innovation and lower prices for consumers.
3. Enhanced Data Access: Business users will now have real-time and continuous access to data generated through their use of Booking.com. This access offers new insights, allowing businesses to better understand customer behavior and tailor their services accordingly.
4. Data Portability: Service providers can choose to transfer the data they generate on Booking.com to alternative platforms. This capability allows them to develop more innovative deals and personalized offers, enhancing their competitive position in the market.

Compliance and Oversight

Booking.com is required to demonstrate full and effective compliance with the DMA by outlining the measures undertaken in a compliance report.

A public version of this report is accessible on the European Commission’s dedicated DMA webpage. Additionally, Booking.com has submitted an independently audited description of the….CONTINUE READING