The European Commission has designated Booking.com’s parent company, Booking Holdings, as a “gatekeeper” under the Digital Markets Act for 27 European countries. This move is part of a broader effort to regulate tech giants like Google and Apple. Booking has six months to submit a report outlining how it complies with certain obligations or face fines of up to 10% of their total worldwide revenue. The company is reviewing the decision and working on solutions to comply with the regulations.
The stricter regulations will require Booking.com to adhere to rules regarding content moderation, fair competition, and making it easier for consumers to switch to other providers. The European Commission aims to ensure that Booking offers more choice to end users and fair access to business users. Under the Digital Markets Act, tech companies with a market cap of at least $82 billion and 45 million monthly active users are subject to mandates on how they conduct business in Europe. Despite these regulations, the impact on Booking.com’s operations remains uncertain.
Skift has been following this story since 2020 when Margrethe Vestager, the European Commission’s antitrust czar, suggested that Booking.com might be designated as a gatekeeper. While the potential impact of this decision is still unclear, previous attempts to change contracts between Booking.com and hotel companies did not significantly alter the market dynamics in Europe. In a similar vein, Brussels blocked Booking’s acquisition of eTraveli last year, citing concerns about consumer pricing.
Vestager emphasized that the decision to regulate Booking Holdings will lead to more choices for vacationers and business opportunities for hotels. The European Commission’s goal is to promote competition and fairness in the online travel sector by imposing stricter regulations on companies like Booking.com. While the company is working with regulators to comply with the new rules, the ultimate impact on the online travel industry in Europe remains to be seen. Booking.com’s operations may need to adapt to the changing regulatory environment in order to navigate the evolving landscape of the digital market.
