The National Court has decided to suspend, for the time being, the historic fine of 413.2 million euros imposed on Booking by the National Commission for Markets and Competition (CNMC) for abuse of dominant position. This move has been welcomed by the company, which is confident that its appeal, filed on October 30, will be resolved in its favor. In a statement, Booking expressed that the initial sanction by the regulatory body has a negative impact on both its partners and consumers.
Suspension of the Fine and Its Implications
Beyond the postponement of the fine, the platform will not be required to immediately modify two of its policies questioned by the CNMC. These practices were classified as exploitative abuse of dominant position and exclusionary abuse of dominant position. According to the regulator, these policies have generated harmful effects in the market, as they prevent hotels from offering lower prices on their own websites, while Booking.com has the power to unilaterally lower the price of rooms published on its platform. This issue originated from the complaints filed in 2021 by the Spanish Association of Hotel Directors and the Hotel Business Association of Madrid, which led to the CNMC’s investigation.
The regulatory body made the fine public on July 30, 2024, arguing that Booking favors hotels with more reservations on its platform, which, according to the CNMC, has made it difficult for other online agencies to enter and expand in the market. This decision comes as Booking has maintained a market share in Spain of between 70% and 90% in the Online Travel Agencies (OTAs) sector since at least January 1, 2019.
Market Dominance and Details of the Fine
The fine is divided into two infractions of 206.6 million euros each: the imposition of unfair commercial conditions on hotels in Spain and the restriction of competition from other online travel agencies. Among the practices highlighted by the CNMC is a price clause that prevents hotels from selling their rooms on their own websites at a lower price than that offered on Booking.com. Additionally, the platform reserves the right to unilaterally reduce those prices. Another point of controversy is the lack of transparency in the information about the benefits and profitability of programs such as Preferente, Preferente Plus, and Genius, which allow hotels to improve their positioning in Booking.com’s search results.
The suspension of the fine and the non-immediate modification of the contested policies are significant developments in this case. It remains to be seen how this will unfold, especially considering the implications for the competitive landscape in the online travel agency sector. For now, Booking’s partners and consumers will continue to navigate the platform under the existing conditions, pending the outcome of the appeal and any potential changes to the company’s practices. As the situation develops, one thing is clear: the stakes are high, and the impact on the market could be substantial, depending on the final decision regarding Booking’s dominant position and the future of its policies.