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EU New Regulations for Booking.com: What is Changing for Businesses
As of today, Booking.com must comply with the European Union's Digital Markets Act (DMA). Businesses are now free to offer different prices and conditions without retaliation and there will be an anhanced data access.
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.
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:
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 techniques it uses for profiling consumers.
The European Commission will carefully analyze the compliance report to assess whether the implemented measures effectively achieve the objectives of the DMA. This assessment will also involve input from interested stakeholders, including during a public compliance workshop scheduled for November 25, 2024, where Booking.com is invited to present its solutions.
Background on the Digital Markets Act
The DMA aims to ensure contestable and fair markets in the digital sector by regulating "gatekeepers"—large digital platforms that act as important gateways between business users and consumers. These gatekeepers can create bottlenecks in the digital economy due to their significant market power.
On May 13, 2024, the European Commission designated Booking.com as a gatekeeper for its online intermediation services. Following this designation, Booking.com had six months to comply with all relevant obligations under the DMA, with the goal of offering more choice and freedom to consumers and business users.
Potential Consequences for Non-Compliance
If the European Commission determines that Booking.com's solutions are not compliant with the DMA, it can take formal enforcement actions. In cases of infringement, the Commission can impose fines of up to 10% of the company's total worldwide turnover, increasing to 20% in the case of repeated infringements. Additionally, in instances of systematic non-compliance, the Commission is empowered to adopt further remedies, such as obliging the gatekeeper to divest parts of its business or banning it from certain acquisitions.
Implications for the Digital Market
The enforcement of the DMA represents a significant shift in the regulatory landscape for major digital platforms like Booking.com. These changes aim to promote fair competition, enhance innovation, and provide better choices for consumers and businesses within the EU digital market. As Booking.com adjusts to these new regulations, the coming months will be crucial in determining how these changes will reshape the online travel and accommodation industry.
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:
- 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.
- 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.
- 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.
- 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 techniques it uses for profiling consumers.
The European Commission will carefully analyze the compliance report to assess whether the implemented measures effectively achieve the objectives of the DMA. This assessment will also involve input from interested stakeholders, including during a public compliance workshop scheduled for November 25, 2024, where Booking.com is invited to present its solutions.
Background on the Digital Markets Act
The DMA aims to ensure contestable and fair markets in the digital sector by regulating "gatekeepers"—large digital platforms that act as important gateways between business users and consumers. These gatekeepers can create bottlenecks in the digital economy due to their significant market power.
On May 13, 2024, the European Commission designated Booking.com as a gatekeeper for its online intermediation services. Following this designation, Booking.com had six months to comply with all relevant obligations under the DMA, with the goal of offering more choice and freedom to consumers and business users.
Potential Consequences for Non-Compliance
If the European Commission determines that Booking.com's solutions are not compliant with the DMA, it can take formal enforcement actions. In cases of infringement, the Commission can impose fines of up to 10% of the company's total worldwide turnover, increasing to 20% in the case of repeated infringements. Additionally, in instances of systematic non-compliance, the Commission is empowered to adopt further remedies, such as obliging the gatekeeper to divest parts of its business or banning it from certain acquisitions.
Implications for the Digital Market
The enforcement of the DMA represents a significant shift in the regulatory landscape for major digital platforms like Booking.com. These changes aim to promote fair competition, enhance innovation, and provide better choices for consumers and businesses within the EU digital market. As Booking.com adjusts to these new regulations, the coming months will be crucial in determining how these changes will reshape the online travel and accommodation industry.
© Copyright eEuropa Belgium 2020-2024
Source: © European Union, 1995-2024
© Copyright eEuropa Belgium 2020-2024
Source: © European Union, 1995-2024
