Over 10k hotels join mass claim against Booking.com

Over 10,000 hotels in Europe have joined a class action lawsuit against Booking.com. They demand compensation for alleged damages caused by the well-known hotel booking site’s previous clauses preventing them from offering lower prices elsewhere. These clauses allegedly violate European regulations.

The lawsuit is being filed by the European hospitality industry association Hotrec. “European hoteliers have long suffered from unfair terms and conditions and excessive costs. Now is the time to stand together and demand redress,” said chairman Alexandros Vassilikos.

In the Netherlands, the Consumentenbond is also preparing a mass claim on behalf of consumers. Approximately 180,000 people registered in the first week after the consumers’ association’s announcement.

Booking.com previously disputed the claims. A spokesperson said in early July that they were based on an incorrect interpretation of previous rulings. “It is absolutely nonsense to claim that Booking.com has artificially inflated prices.”

Last year, the European Court of Justice ruled that the restrictions imposed by Booking.com on hotels offering lower rates on their own websites or other platforms were unnecessary and could reduce competition. However, Booking.com argued that such clauses were not inherently anticompetitive under EU law.

If the class actions go to court, Booking.com intends to oppose them. The platform, founded in the Netherlands in the 1990s, has abandoned the offending policy in Europe.

Parity clauses are no longer permitted under the European Digital Markets Act, which came into effect last year. This law is intended to curb the power of digital platforms, which consumers and businesses can hardly ignore.