The online travel agency Booking.com has been fined an unprecedented €413 million by Spain’s competition watchdog for “abusing its dominant position” during the past five years.
“These practices have affected hotels located in Spain and other online travel agencies that compete with the platform. Its terms and conditions create an inequitable imbalance in the commercial relationship with hotels located in Spain,” said the Comisión Nacional de los Mercados y la Competencia, more commonly known by its acronym CNMC, in an issued statement.
“By better positioning hotels with more bookings on Booking.com, other online agencies have been prevented from entering the market or expanding,” it added.
This is the largest fine ever imposed by the CNMC, a spokeswoman for the authority confirmed. Spain is the world’s second-most visited country after France, and tourism is a major source of the country’s GDP, providing a livelihood for millions of people. According to the regulator, Booking.com had a market share of “between 70 to 90 per cent” in Spain.
In response, Booking.com said it “strongly disagreed” with the CNMC’s findings.
The platform said it would appeal the authority’s “unprecedented decision”, adding that it did not take into account programs it offers its “accommodation partners” to help them boost their business.
The online travel agency, whose parent company Booking Holdings is headquartered in the United States, is a dominant player in the European travel market, with more than 60 per cent market share overall.
In May, the European Union added Booking.com to its list of digital companies big enough to fall under tougher competition rules, giving the firm six months to prepare for compliance with the landmark Digital Markets Act (DMA).
The rules aim to level the playing field in the digital market, ensuring EU users have more options when choosing products.
Brussels said that tougher regulation of Booking.com would mean that holidaymakers would “start benefiting from more choice” and hotels would “have more business opportunities”.
Hungary’s competition watchdog earlier this month slapped Booking.com with a second fine for failing to cease its “unfair” business practices, including putting psychological pressure on customers.
In 2020, the firm was fined 2.5 billion forint ($7 million) by the Hungarian Competition Authority for utilizing overly aggressive sales tactics.