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Thousands of hotels file lawsuits against Booking.com

Multiple hotels across Europe have sustained damage due to the implementation of alleged 'best price clauses' on a travel platform.

Thousands of hotels file lawsuits against Booking.com
Thousands of hotels file lawsuits against Booking.com

Thousands of hotels file lawsuits against Booking.com

European Hotels Launch Class-Action Lawsuit Against Booking.com

More than 10,000 European hotels have banded together to file a class-action lawsuit against Booking.com in the Netherlands, seeking compensation for revenue losses and excessive commission costs linked to the platform's best price clauses enforced between 2004 and 2024.

The lawsuit, coordinated by the Hotel Claims Alliance, argues that these clauses unfairly inflated costs and restricted the ability of hotels to attract direct bookings. The European Court of Justice (ECJ) ruled in September 2023 that such restrictions violate antitrust laws and harm competition.

The case is supported by over 30 national hotel associations, including Germany's IHA and Italy's Federalberghi, organized under the European Hotel Alliance HOTREC. Hotels claim that the clauses forced them to pay high commission fees, leaving them with only about €83–87 from every €100 booking.

Booking.com, headquartered in the Netherlands, previously used these clauses to prevent "free-rider" bookings, where customers first find hotels on Booking.com but book directly to avoid commission fees. However, the ECJ judges determined that platforms like Booking.com can exist economically without such provisions.

The action marks a significant challenge to Booking.com's dominant position, holding roughly 71% of the European online hotel booking market. Following the ECJ ruling and enforcement of the EU's Digital Markets Act (DMA) in 2024, Booking.com abolished these clauses within the European Economic Area.

However, hotels seek retrospective compensation for approximately 20 years of alleged anticompetitive conduct. The case is ongoing in an Amsterdam court, with the deadline for hotel registration extended to 29 August 2025 to allow wider participation.

IHA CEO Markus Luthe stated that the lawsuit is receiving overwhelming support, with hotels eager to reclaim lost revenue due to the best price clauses. Alessandro Nucara, general director of the Italian association Federalberghi, also supports the lawsuit and calls for compensation.

The lawsuit is due to a ruling by the ECJ from the previous year, which stated that hotels should be allowed to offer lower prices on other platforms or their own websites. This ruling made little difference for travellers, but it could have a significant impact on the European hotel industry.

[1] European Court of Justice ruling on best price clauses: https://curia.europa.eu/juris/document/document.jsf?text=&docid=217521&pageIndex=0&doclang=EN&mode=lst&dir=&occ=first&part=1&cid=222278 [2] Hotel Claims Alliance: https://hotelclaimsalliance.com/ [3] HOTREC: https://www.hotrec.eu/ [4] Booking.com's response to the lawsuit: https://news.booking.com/bookingcom-responds-to-hotel-claims-alliance-lawsuit/

The European Hotel Alliance HOTREC, along with over 30 national hotel associations, are collectively pursuing a class-action lawsuit against Booking.com, aiming to recover revenue losses and excessive commission costs associated with the platform's best price clauses. In support of the lawsuit, the IHA CEO Markus Luthe and Alessandro Nucara, general director of the Italian association Federalberghi, assert the need for compensation for up to 20 years of alleged anticompetitive practices.

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