Spain Fines Booking.com for Dominance

Spain's competition authority, the CNMC, has imposed a historic €413 million fine on online travel agency Booking.com for allegedly abusing its dominant market position over the past five years. The CNMC stated that the company's practices have adversely affected hotels in Spain and hindered competition from other online travel agencies. The authority highlighted that Booking.com’s terms and conditions create an unfair imbalance in its commercial relationships with hotels, allowing it to prioritize certain listings based on booking volume. The CNMC's investigation revealed that Booking.com held a market share of between 70% and 90% in Spain, which is the second most visited country globally. The fine represents the largest ever levied by the CNMC, underscoring the severity of the agency's findings. Booking.com, which operates under its parent company Booking Holdings based in the United States, also commands over 60% of the European market. In May, the European Union classified Booking.com as a significant digital player, subjecting it to stricter competition regulations under the Digital Markets Act (DMA). This legislation aims to enhance competition in the digital marketplace, providing consumers with more choices and creating better opportunities for hotels. Additionally, Booking.com has faced scrutiny from other European regulators, including Hungary, where it was recently fined for continuing unfair business practices. This ongoing regulatory pressure highlights a growing concern over the company's market influence and its impact on fair competition in the travel industry.