Booking.com is staring down the barrel of a massive legal showdown as hotel owners across Europe accuse the travel platform of siphoning billions in profits through allegedly exploitative business tactics.
Hoteliers in France, Spain, and Germany—backed by industry heavyweight HOTREC—are gearing up to take the Dutch-based site, owned by U.S. firm Priceline Group, to court. They claim that Booking.com’s hefty commission fees and restrictive pricing rules have dealt a serious blow to their bottom lines.
French hotels alone estimate damages at around €1.5 billion, while in Spain, losses could total about 2% of annual hotel revenue. Meanwhile, 2,600 German hoteliers have already filed for over €300 million in compensation.
At the heart of the dispute is the use of “rate parity clauses,” a contractual provision that allegedly bars hotels from offering cheaper rates on their own websites than on Booking.com. Critics say this stifles competition and traps hoteliers in an uneven playing field. German courts have previously ruled against such clauses, citing similar concerns.
Marc Barennes, legal counsel for the French plaintiffs, told AFP the legal campaign is in full swing and could reach the French Commercial Courts by October. “This isn’t just about money—it’s about fairness in the digital marketplace,” he said.
Booking.com, for its part, downplayed the furor. “We haven’t received any official notice of a class action,” a spokesperson told Brussels Signal, emphasizing the company’s commitment to “positive collaboration” with its partners.
But the tide may be turning. A recent judgment by the European Court of Justice dismissed rate parity clauses as “unnecessary and disproportionate,” lending momentum to the lawsuits.
HOTREC, which represents the hospitality industry across Europe, isn’t pulling any punches. It’s not only chasing damages but also pushing for structural reforms in how Booking.com operates. Legal teams in Italy and Portugal are reportedly in talks to join the growing coalition, forming a pan-European front.
Among the grievances: lack of transparency in how the platform ranks hotels, complaints about its mandatory prepayment system, and concerns over algorithmic opacity. The group argues Booking.com is flouting the EU’s Digital Markets Act, which demands greater fairness and openness from dominant digital platforms.
The numbers are eye-popping. Booking.com currently commands over 70% of the online booking market in Europe, according to HOTREC’s 2024 study. Commission rates typically range from 15% to 27%, and can climb higher for hotels that opt into promotional programs—often eating away at already-thin profit margins.
Last year, HOTREC’s Director General Marie Audren accused Booking.com of hoarding guest data and blocking hotels from offering better prices elsewhere. She described the platform’s practices as “unrelenting and unfair,” leading to daily financial and operational headaches for hoteliers.
To support the upcoming lawsuit, French hoteliers have launched a dedicated portal to track and quantify losses dating back to 2015. The class-action structure means hotels can join without paying upfront legal fees—payment only kicks in if they win.
The law firm leading the charge has a strong track record against Big Tech, and Barennes is no stranger to industry litigation. He’s simultaneously spearheading a similar case against companies in France’s meal voucher sector, already hit with penalties for anti-competitive behavior.
While Booking.com maintains a calm front, pressure is mounting—and fast. As more countries rally to the cause, the legal storm brewing across Europe might soon force the travel giant to rethink how it does business on the continent.
