Booking, Antitrust starts investigation for abuse of dominant power
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The Competition and Market Authority has initiated preliminary proceedings against Booking.com (Italia) Srl, Booking.com BV and Booking.com International BV to ascertain an alleged abuse of a dominant position in the market for online intermediation services and booking of hotel facilities, in violation of the art. 102 of the TFEU.
In particular, the Antitrust explains in a note, Booking would give the hotel structures that are part of the Preferred Partner Program (and its extension Preferred Plus) advantages in terms of visibility of their offer in search results, in exchange for higher commissions and the commitment to offer “competitive” prices on booking.com, i.e. not higher than those that the structures apply on their own website or on the platforms of other online travel agencies (so-called OTAs).
At the same time, when it finds, as a result of extensive and sophisticated monitoring, that a facility offers better prices on other online sites, Booking reserves the right to apply, without the facilities’ consent, a discount (the so-called Booking Sponsored Benefit) to align booking.com’s offer with the best among those available online. Taken as a whole, explains the Antitrust, this strategy seems suitable for hindering effective competition in the market, at least nationally, of online hotel intermediation and booking services, to the detriment of other OTAs with negative effects on accommodation facilities and, in ultimately, on consumers in terms of higher prices and less choice in online intermediation and booking services. Yesterday, Authority officials carried out inspections at the offices of Booking.com (Italia) Srl, with the help of the Special Antitrust Unit of the Guardia di Finanza.
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