Spain’s CNMC initiates antitrust proceedings against Amsterdam-based Booking.com: Know more

The National Markets and Competition Commission (CNMC) of Spain announced on Monday, October 17, that it has opened formal antitrust proceedings against Amsterdam-based Booking.com for possible anticompetitive practices affecting hotels and online travel agencies.

The Spanish Association of Hotel Managers (Asociación Espaola de Directores de Hotel) and the Regional Hotel Association of Madrid (Asociación Empresarial Hotelera de Madrid) filed complaints with the CNMC that led to the inquiry.

CNMC is the body that promotes and preserves the proper functioning of all markets in the interest of consumers and companies. It is a public body with its own legal personality. It is independent of the Government and is subject to parliamentary control. CNMC became operational on October 7, 2013.

“Abuse of a dominant position”

The investigation covers Booking.com’s practices that entail actions that may amount to an abuse of a dominant position in the way that online travel agencies (OTAs) provide intermediary services to hotels. In particular, these actions may include (i) imposing unfair trade terms on Spanish hotels and (ii) adopting commercial strategies that would exclude competing OTAs and other online sales channels.

The investigation also looks at actions that can involve taking advantage of the economic dependency of Spanish hotels. Due to the distortion of free competition they have caused, this may therefore amount to unfair competition activities that undermine the public interest.

Following a review filed and the data acquired during the preliminary inquiry, the Competition Directorate of the CNMC believes there is evidence to suggest that Booking.com perhaps violated paragraphs 2 and 3 of the SCA as well as TFEU article 102.

According to a statement from CNMC, the start of official procedures does not determine how the case will turn out. The CNMC has a maximum of 18 months to carry out its inquiry and make a conclusion.

Booking.com’s response

In a statement to Silicon Canals, Booking.com says, “We have and will continue to partner with the CNMC on their questions regarding Booking.com Spain. Booking.com has always and will continue to work collaboratively with our accommodation partners in the travel ecosystem, which has only recently seen signs of recovery as we enter a further uncertain future with the global economic environment. We continue to work tirelessly to secure and deliver much-needed demand for our accommodation partners, helping them fill their rooms every day.”

About Booking.com

Founded in 1996, Booking.com claims to be one of the world’s leading digital travel companies. The company’s goal is to make it easier for everyone to experience the world.

Through its technology platform, the company helps millions of travellers with a variety of transportation options and “incredible” places to stay, including houses, hotels, and more. As one of the world’s largest travel marketplaces for both established brands and entrepreneurs of all sizes, Booking.com enables properties all over the world to reach a global audience and grow their businesses.

Currently, more than 28 million reported lodging listings are accessible on Booking.com, which is available in 43 different languages. This number includes more than 6.2 million listings for houses, apartments, and other unusual accommodations.