The Italian Competition Authority, also known as Antitrust, has launched an investigation into Booking.com (Italy) S.r.l., Booking.com B.V., and Booking.com International B.V. for potentially abusing their dominant position in the online hotel intermediation and booking services market, violating Article 102 TFEU (Treaty on the Functioning of the European Union).
Allegations suggest that Booking grants advantages to hotels participating in its “Preferred Partner Program” and its extension, “Preferred Plus” in exchange for higher commissions and a commitment to maintain competitive prices on booking.com. If Booking detects better prices elsewhere, it unilaterally applies a discount, known as Booking Sponsored Benefit, to align prices on its platform.
Booking, a leader in online accommodation brokerage, operates globally under Booking Holdings Inc., with brands like Priceline, Agoda, and KAYAK. In 2023, the group reported a turnover exceeding USD 21 billion. Booking.com (Italy) S.r.l. operates in Italy, providing support services to the parent company.
The investigation focuses on two Booking programs: Preferred Partner Programme and Sponsored Discount. The former enhances hotel visibility on Booking’s platform in exchange for higher commissions, while the latter is a discount applied by Booking without consent from hotels to match prices found elsewhere.
The Antitrust Authority suggests Booking actions may hinder effective competition, especially in the online hotel brokerage and reservation market. Booking’s strategy potentially limits the autonomy of hotels and could result in negative consequences for consumers, such as increased prices and reduced options in online booking services.
