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How Europe is Fighting Back Against Booking.com: Shocking Issues You Need to Know Before Booking Your Stay


Published on
August 26, 2025

In a significant move, over 10,000 hotels across Europe are uniting to file a massive lawsuit against Booking.com, one of the leading global online travel agencies. The lawsuit, which spans across 30 countries, claims that the platform’s business practices, particularly its high commission rates and restrictive clauses, are harming the competitiveness of the hotel industry. This legal battle has been sparked by long-standing grievances about the unfair terms imposed by the platform, especially for smaller and independent establishments. As Booking.com continues to dominate the online travel agency market in Europe, these hotels are seeking legal redress to recover millions of euros in damages from unfair commissions and other anti-competitive practices.

The Rise of Booking.com’s Dominance

Over the past two decades, Booking.com has solidified its position as the leader in the online travel agency sector, commanding an impressive 71% market share in Europe. The platform’s dominance has grown steadily, with the company’s share increasing by 10% over the last decade. Despite facing competition from other platforms like Expedia, which holds only 15% of the market, Booking.com remains the preferred choice for millions of travelers seeking accommodations. However, this widespread influence has led to growing concerns among hoteliers about the platform’s business practices.

For many hotels, particularly small independent properties, Booking.com has become a vital source of bookings and visibility. However, this reliance on the platform has led to frustrations over the terms imposed by Booking.com, which include high commission rates and restrictive clauses that prevent them from offering lower prices on other platforms or even their own websites. These terms are seen as unfair, particularly given the platform’s commanding market position.

The Lawsuit: Unfair Terms and High Commissions

At the heart of the lawsuit is the issue of high commission rates charged by Booking.com. Hotels are required to pay a commission of approximately 15% for each reservation made through the platform, although the rates can exceed 20% in certain cases. This commission is seen by hoteliers as excessive, especially when compared to the services provided by the platform. Hotels argue that the fees leave them with little profit margin, particularly for smaller establishments that operate on tight budgets.

In addition to the high commissions, Booking.com imposes parity clauses, which prevent hotels from offering lower prices on other booking platforms or even on their own websites. This practice is viewed as anti-competitive, as it restricts hotel owners’ ability to set their own pricing and market their rooms more competitively. The hotels involved in the lawsuit argue that these restrictive clauses have resulted in a lack of pricing flexibility, which harms both their business operations and consumer choice.

Legal Action: The European Class-Action Lawsuit

The legal battle, led by the European association Hotrec, is poised to be one of the largest class-action lawsuits in the hospitality sector. More than 10,000 hotels across 30 countries have joined the case, with Spain being one of the most active participants. In Spain, the platform holds a staggering 90% market share, with 200,000 establishments relying on Booking.com for bookings. The Spanish hotel industry has also expressed strong dissatisfaction with the platform’s practices, with many businesses reporting that up to 60% of their revenue comes from Booking.com.

The lawsuit seeks compensation for the unfair commissions paid by hotels, as well as the damages caused by the restrictive terms imposed by Booking.com. The hotels involved argue that these practices have caused significant financial losses over the years and that the platform has abused its market power to impose conditions that benefit itself at the expense of the hospitality industry.

The plan is to file the class-action lawsuit in Amsterdam, the headquarters of Booking.com, in the coming months. If successful, the hotels could receive compensation for the excessive commissions paid, along with interest. Experts estimate that the total damages could amount to hundreds of millions of euros. This legal challenge is expected to set a precedent for future cases involving online platforms and their business practices in Europe.

Impact of the CJEU Ruling and National Actions

The European Court of Justice (CJEU) has already ruled that Booking.com’s parity clauses restrict competition. This ruling, which came after a complaint by 2,000 German hoteliers, confirmed that the clauses are anti-competitive and limit market competition. Following this decision, national competition authorities, including Spain’s CNMC, have also declared that Booking.com’s practices violate European competition laws.

Despite the CJEU ruling, Booking.com has maintained that the parity clauses do not have an anti-competitive effect and has vowed to challenge the decision in court. The company argues that these clauses are necessary to ensure consistency in pricing across different platforms. However, critics contend that these practices ultimately harm both hotel owners and consumers by limiting price competition and inflating booking costs.

In Spain, Booking.com was fined €413 million in 2024 by the CNMC for using parity clauses and other unfair commercial practices. The platform has appealed this decision, and a provisional suspension of the fine has been granted while the case is being reviewed. This ongoing legal battle underscores the growing tensions between the platform and the hotel industry, which is calling for a more equitable and transparent system.

The Road Ahead: Spain’s Legal Challenge

While the European lawsuit is progressing, Spanish hoteliers have opted to pursue their case in Spanish courts rather than joining the European class-action lawsuit. The legal action in Spain is being led by CCS Abogados, a Madrid-based law firm, and aims to recover the excessive commissions paid to Booking.com since 2004. Over 600 Spanish hotels, including large hotel chains, have already joined the lawsuit, and the number is expected to increase as more establishments recognize the financial impact of the platform’s practices.

The Spanish lawsuit is expected to be filed in 2026, with a target of reaching 2,000 plaintiffs. Hoteliers can join the case or sell their rights to claim, which offers an alternative for those concerned about potential retaliation from Booking.com. If the lawsuit is successful, the plaintiffs will receive 70% of the compensation obtained, with the remaining 30% allocated to cover legal costs.

The lawsuit against Booking.com represents a major challenge for the platform, which has long enjoyed a dominant position in the European online travel market. As the legal action progresses, hotels across Europe are calling for a more transparent and fair system that ensures competition and benefits consumers. The outcome of this case could have wide-reaching implications for the future of online travel agencies and their relationships with the hospitality industry. If the courts rule in favor of the plaintiffs, it could lead to significant changes in the way Booking.com operates and could serve as a blueprint for similar lawsuits in other regions.

[Source: en.ara.cat]