The investigation focuses on Booking.com Preferred Partner Program, which offers benefits in terms of visibility to hotel facilities in exchange for specific conditions.
Contents
What is the Booking.com Preferred Partner Program?
The Preferred Partner Program is an affiliate program offered by Booking.com to hotel properties. Properties that join the program gain greater visibility in the Booking.com booking platform, but in exchange for higher commissions and a commitment to offering competitive prices compared to other online travel agencies.
The accusation of abuse of a dominant position
According to the Antitrust, Booking.com has applied policies that could reduce the possibility of choice for customers. Hotels participating in the Preferred Partner Program would have agreed to offer more competitive prices and pay higher commissions, obtaining in exchange greater visibility on the Booking.com platform. However, this strategy could hinder effective competition in the online hotel booking market.
The Antitrust declared that this practice could have negative effects both on other online travel agencies and on the hotel structures themselves. Furthermore, consumers may suffer negative consequences such as higher prices and fewer choices of online booking services.
Antitrust inspections
To conduct the investigation, the Antitrust carried out inspections at the Booking.com offices in Italy, in collaboration with the Special Antitrust Unit of the Financial Police. These inspections aim to gather evidence and information to assess whether Booking.com has actually violated competition rules.
Booking.com's response
“We can confirm that we are fully cooperating with the Financial Police and the Competition and Market Authority, who carried out inspections in our offices in Italy yesterday”.
Booking.com responded to the Antitrust inspections by declaring that it cooperates fully with the competent authorities. The company said it is committed to ensuring fair competition and offering its customers a wide choice of hotel booking services. However, as of this writing, Booking.com has made no further comment on the matter.
The implications for the online hotel booking market
The Antitrust investigation into Booking.com raises important questions about competition in the online hotel booking market. If Booking.com is found guilty of abusing a dominant position, corrective measures could be taken to restore fair competition in the industry.
Additionally, the investigation could impact how other online hotel booking platforms operate. Affiliate policies and terms and conditions offered to hotels may need to be reviewed to ensure fair competition and adequate choice for consumers.
What happens now?
The Antitrust investigation into Booking.com for allegedly abusing its dominant position in the online hotel booking market is an important development in the industry. It is essential to ensure fair competition and adequate choice for consumers, avoiding situations where a single platform dominates the market and limits competition.
The outcome of the investigation will determine whether Booking.com has actually violated competition rules and whether corrective measures will be necessary. In the meantime, consumers and hospitality businesses can continue to use Booking.com as their booking platform, keeping in mind that the investigation could lead to changes in the industry.
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