For anti-competitive practices Spain to fine Booking.com €500M

Europe steps up its efforts to curb tech dominance and create space for smaller players.

Spain’s antitrust watchdog, the National Markets and Competition Commission (CNMC), is poised to fine Booking Holdings, the parent company of Booking.com, nearly €500 million following a probe launched in 2022. This move aligns with Europe’s broader effort to curtail the dominance of tech giants and create opportunities for smaller businesses in the digital market.

The CNMC found Booking Holdings guilty of anti-competitive practices, including prohibiting local hotel groups from offering lower prices on their own websites compared to Booking.com. This behavior allegedly stifled competition and limited consumer choice. Consequently, the CNMC proposed a €486 million penalty, the largest fine it has ever issued.

Booking Holdings disputes the charges, arguing that allowing hotels to offer lower prices on their own sites could disadvantage consumers, according to sources cited by the Financial Times. The company’s CEO, Glenn Fogel, stated their intention to appeal the fine if it stands, acknowledging that such legal processes could take years. He also indicated the need to adapt their business practices in response to the ruling.

This news comes on the heels of the EU’s recent announcement regarding a €500 million fine levied on Apple for allegedly stifling competition in its music streaming service. This trend highlights Europe’s increasing scrutiny of dominant tech companies and their adherence to fair market practices.

Currently, tech giants operating in the EU, including Booking, are required to demonstrate compliance with the landmark Digital Markets Act (DMA). This legislation, effective March 7, 2024, aims to level the playing field for smaller businesses and other tech firms by addressing concerns regarding unfair practices employed by tech giants.