More than 10,000 European hotels sue Booking.com

More than 10,000 hotels across Europe have joined a class action lawsuit against online travel platform Booking.com, accusing the company of unfair business practices that have resulted in significant financial losses, Dutch public broadcaster NOS reported.

More than 10,000 European hotels sue Booking.com. Photo: Getty Images

According to NOS, the hotels are seeking compensation for policies they say have stifled competition and reduced their revenue. The complaint centers on “best price” or price parity clauses that Booking.com has used for years. These clauses prohibit hotels from offering lower prices on their own website or through other booking platforms.

Supporting the plaintiffs in the above lawsuit are the organization HOTREC representing the European hotel industry and more than 30 national hotel associations.

In a statement, HOTREC Chairman Alexandros Vassilikos said the class action sends a clear message that the European hotel industry will never tolerate abusive practices in the digital marketplace.

According to HOTREC, all eligible hotels can register to join this lawsuit until August 29. The organization also plans to file a lawsuit in a Dutch court.

The move follows a similar initiative by Dutch consumer advocacy group Consumentenbond. In June this year, Consumentenbond announced that it was preparing a class action lawsuit on behalf of Booking.com customers, accusing the platform of inflating prices through “illegal agreements and deceptive practices.” Booking.com has denied any price manipulation allegations. The platform said it is reviewing the complaints and will respond formally in the near future.

Booking.com is facing regulatory scrutiny in Europe. Last July, a Spanish court fined the platform 413 million euros ($478 million) for similar practices. The European Court of Justice later ruled that such price-parity clauses violate European Union (EU) competition law.

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