Booking.com gets fined €0.33M over hotel contract clauses

The Office for the Protection of Economic Competition, along with other EU competition authorities, have been discussing online platforms and distribution networks. In their research, these entities have unanimously decided to fine online booking giant, Booking.com, Kc8.3 million (approximately €330,000). Their reason? Booking.com uses most-favored-nation (MFN) clauses in their contracts with hotels.

In its first-instance decision, the office concluded that Booking.com BV had acted in breach of competition law by including MFN clauses in contracts with short-term accommodation providers (hotels). According to the office, the decision followed an in-depth investigation, during which hundreds of hotels were approached.

Booking.com allegedly entered into vertical agreements with hotels in the Czech Republic between 1 May 2009 and 30 June 2015, which distorted competition in the Czech online booking platform market for hotels and potentially other EU countries.

The restrictive MFN clauses required Booking.com's contractual partners to offer the platform the same or better conditions as regards the price of accommodation and availability of rooms than those available on the hotel's website or on any other online or offline distribution channel used by the hotel. In effect, according to the office, these clauses:

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