Thousands of Hotels File Lawsuits Against Booking.com in Tourism Industry Dispute
European Hotels Launch Class-Action Lawsuit Against Booking.com
Over 10,000 European hotels have joined forces in a historic class-action lawsuit against Booking.com, seeking compensation for alleged antitrust violations that occurred from 2004 to 2024. The lawsuit, coordinated by the Hotel Claims Alliance and supported by more than 30 national hotel associations, is currently proceeding in the Dutch courts.
At the heart of the case are the "best price" clauses that Booking.com enforced for nearly two decades. These clauses required hotels not to offer cheaper room rates on any other platform or their own websites, restricting competition and consumer choice. In September 2024, the European Court of Justice (ECJ) declared these clauses illegal, stating that they violated EU antitrust laws.
Following the EU’s Digital Markets Act (DMA) enforcement in 2024, Booking.com abolished these clauses within the European Economic Area.
The class action seeks compensation for damages incurred by hotels over the 20-year period from 2004 to 2024 attributable to these enforced pricing restrictions. Alexandros Vassilikos, President of HOTREC, emphasized that European hoteliers have suffered from unfair and excessive costs due to these practices and aim to redress this harm through legal means.
The lawsuit has garnered significant support. Markus Luthe, chief executive of the German Hotel Association (IHA), stated that the class-action lawsuit is receiving overwhelming support. Alessandro Nucara, general director of the Italian association Federalberghi, added, "Now is the time to come together and demand redress."
Booking.com remains a critical platform for many hotels, holding a 71% market share across Europe in 2023. This highlights the complex dynamic between reliance on the platform and disputes over its pricing policies.
A study by HOTREC and the University of Applied Sciences Western Switzerland revealed that the market share of Booking Holdings was 71% in Europe in 2023, with 72.3% in Germany. The share of direct bookings in Germany fell by around eight percentage points between 2013 and 2023.
The registration deadline for the lawsuit has been extended to August 29 due to a great response. As the case progresses, it will be closely watched by the hospitality industry and antitrust regulators alike.
Hotels in Europe, involved in the class-action lawsuit against Booking.com, argue that the technology giant's "best price" clauses, enforceable from 2004 to 2024, negatively impacted finance within the business sector by limiting competition and raising costs. The lawsuit, with a registration deadline extended to August 29, seeks compensation for this financial loss.
