Unprecedented united front of European hoteliers against abuses by Booking.com

Unprecedented united front of European hoteliers against abuses by Booking.com

European hoteliers have launched a joint action against Booking.com to fight against what they consider abuses derived from the booking platform's hegemonic position. The Spanish CEHAT and other associations from more than 25 countries have formed this common front, which has the support of HOTREC, the umbrella entity representing the sector at the EU level.

Following the judgment of the Court of Justice of the European Union (CJEU) of September 19, 2024, which declared that the platform's parity clauses infringed EU competition law, European hoteliers have joined together in a historical joint action against Booking.com.

“Over the last 20 years, these class parity clauses have put European hotels at a significant competitive disadvantage. They suppressed price competition between Booking.com and other online platforms, resulting in very high commissions paid by hotels. In addition, the clauses prevented hotels from offering better prices or availability on their own websites, limiting direct sales and autonomy, according to a statement from the Spanish Confederation of Hotels and Tourist Accommodation (CEHAT).

The association, a member of HOTREC, has signed a collaboration agreement with CCS Abogados so that its member companies can claim against Booking.com for damage caused by the use of these contractual clauses. Claims in Spain will be made in coordination with other European countries.

The firm will manage the claim in collaboration with the German SGP Schneider Geiwitz, which coordinates and leads the European action;SGP has been litigating against Booking since 2013 in different proceedings in Germany, the Netherlands and before the Court of Justice of the European Union (CJEU). SGP sued Booking in 2021 on behalf of the German Hotel Association and on behalf of 2,000 hotel companies. It was the obtained the successful CJEU ruling on parity clauses.

Under the general principles of European competition law, hotels across Europe are entitled to claim compensation from Booking.com for the economic losses suffered. Affected hotels can opt to recover a significant portion of the commissions paid to the platform in any period between 2004 and 2024, plus interest.

CEHAT says that Spanish hotels can join this initiative by registering on the website www.sobrecostebooking.com. As stated by Ramón Estalella, secretary general of CEHAT, “Spanish hotels can join this initiative to defend their rights and may choose to sue in Spain or in the Netherlands. Claims made in Spain against Booking will be handled in coordination with those made in Europe.