Booking.com must now comply with the Digital Markets Act

• Booking must comply with the Digital Markets Act, opening up new opportunities for EU travel service providers.
• The Digital Markets Act ensures fairer competition by allowing businesses to differentiate prices across platforms.

What happened

As of November 14, 2024, Booking Holdings Inc., a major player in the online travel industry, is officially required to comply with the Digital Markets Act (DMA). This follows its designation as a “gatekeeper” on May 13, 2024. The move is a significant step in reshaping how Booking.com operates, especially for hotels, car rental services, and other travel-related providers that rely on the platform to reach customers across Europe.

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Booking, which has long been a dominant force in the European tourism ecosystem, now faces new obligations under the DMA. The law aims to ensure fair competition within digital markets by regulating large digital platforms—those with considerable control over access to users. For years, many businesses in the EU had to guarantee the lowest prices on Booking.com, limiting their ability to offer better deals on other platforms. Now, with the DMA’s implementation, these companies can freely adjust their prices and conditions on other channels, bringing greater flexibility and competition to the online marketplace.

Margrethe Vestager, the European Commissioner for Competition, emphasized that the new regulations would level the playing field. “Booking must now comply with the DMA, and their role as an intermediary will become fairer and more open,” she said. The regulatory changes are expected to transform the way businesses and consumers engage on platforms like Booking.com, providing new opportunities for travel service providers to diversify their sales strategies.

Why this is important

The shift in Booking.com’s operational requirements marks a critical milestone in the European digital landscape. For years, the dominance of platforms like Booking.com has raised concerns about market fairness and the ability of smaller businesses to compete. The DMA aims to curb the power of these “gatekeepers,” forcing them to adhere to regulations that promote open, contestable markets.

For European hotels, car rentals, and other travel services, the ability to differentiate pricing and conditions outside of Booking.com could reshape their business models. Previously, companies were often locked into one pricing structure to maintain visibility on the platform. This regulatory shift allows greater autonomy and a chance to attract customers through alternative channels. As Vestager points out, the DMA is an essential tool in fostering fairer online marketplaces that benefit both businesses and consumers alike.

For Booking.com, the company must adapt to a more competitive environment, where its ability to control pricing and availability is now restricted. While this may challenge its market dominance, it also opens doors for innovation, as the platform may need to evolve its offerings to stay relevant in a more diverse digital economy. The new regulations are not just a win for smaller businesses but also a reflection of the European Union’s commitment to a digital economy that prioritizes fairness and transparency.