Booking.com Hit With EU’s ‘Gatekeeper’ Status, Faces Tighter Regulation
Skift Take
Key Points
- Booking Holdings designated as a 'gatekeeper' under EU's Digital Markets Act.
- Stricter regulations aim to ensure fair competition and consumer choice.
- Skift has tracked the developments since 2020, suggesting limited impact based on past regulatory efforts.
Summary
The European Commission has designated Booking Holdings, the parent company of Booking.com, as a 'gatekeeper' under the EU's Digital Markets Act, imposing stricter regulations to ensure fair competition and consumer choice. Booking Holdings has six months to comply or face significant fines. Skift has been following the developments since 2020, noting that the impact of such regulations may be limited based on past experiences.
The European Commission said on Monday it had designated Booking.com’s parent company, Booking Holdings, as having “gatekeeper” regulatory status under the European Union’s Digital Markets Act. The move came as part of a broader effort to rein in tech giants such as Google and Apple.
Booking has six months to submit a report outlining how it complies with certain obligations. Non-compliance could lead to fines of up to 10% of the company’s total worldwide revenue.
“We have been working with the European Commission for some time as we anticipated today’s decision,” said a Booking Holdings spokesperson. “We are reviewing their designation decision now and will continue to work constructively with them as we develop solutions to comply.”
Stricter Regulations
The move will impose stricter obligations on Booking.com regarding content moderation, fair competition, and making it easier for consumers to switch to other providers. The European Commission said its action will make sure Booking is “offering more choice and freedom to end users and fair access of business users to the gatekeeper services.”
Under the Digital Markets Act, tech companies having at least an $82 billion market cap and 45 million active monthly users face mandates on how they do business in Europe.
Skift has followed the story since 2020 when European Commission antitrust czar Margrethe Vestager floated the idea that Booking.com might be designated as a gatekeeper. Skift has noted that the potential impact may be overblown, given how previous efforts to change the contracts Booking.com and other online travel players have with hotel companies didn’t much change the dynamics in Europe.
Brussels last year blocked Booking’s bid for eTraveli, a smaller online travel agency, claiming the deal would lead to higher consumer prices.
Vestager said in a press statement that the decision means that vacationers “will start benefiting from more choice and hotels will have more business opportunities.”
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Photo Caption: Booking Holdings CEO Glenn Fogel in discussion with Skift Executive Editor Dennis Schaal at Skift Global Forum.
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