Spain watchdog levies historic fine on Booking.com 413m euros

(MENAFN) Spain's competition watchdog, the CNMC, has levied a historic fine of 413 million euros against Booking.com, citing the platform's unfair business practices that allegedly disadvantaged hotels and hindered competition from other online travel agencies in the country. According to the CNMC, Booking.com's terms and conditions created an unequal balance in its commercial relationships with hotels in Spain, favoring those with higher booking volumes and impeding market entry for competitors.

Booking.com, a leading player in Europe with a market share exceeding 60 percent, faced scrutiny over its dominant position in Spain, where it reportedly controlled between 70 to 90 percent of the market during the investigation period. The CNMC's statement highlighted that these practices not only affected local hotels but also restricted the ability of other online travel agencies to compete effectively.

This fine marks the largest ever imposed by the CNMC and underscores ongoing regulatory efforts to ensure fair competition in the digital market. The European Union recently included Bookingin its list of digital giants subject to stricter competition regulations under the Digital Markets Act (DMA), aimed at fostering greater consumer choice and business opportunities for hotels across the EU.

Previously, Hungary's competition authority also penalized Bookingfor similar practices, emphasizing the growing regulatory scrutiny faced by digital platforms operating in Europe. The fines underscore a broader effort by regulators to address concerns over market dominance and ensure a level playing field in the online travel sector, benefitting both consumers and businesses alike.

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