€413m fine against Booking.com suspended « Euro Weekly News
Spain’s National Court has temporarily suspended the €413.2 million fine imposed on Booking.com by the National Commission for Markets and Competition (CNMC).
The CNMC originally imposed the fine in July 2024, accusing Booking.com of engaging in anti-competitive practices that restricted Spanish hotels from offering lower prices on their own websites. The commission also alleged that the platform used ranking and loyalty programmes to favour hotels that concentrated their bookings on Booking.com, limiting competition from rival OTAs, as reported by Cinco Días.
On October 30, 2024, Booking.com appealed the ruling, claiming that the fine would harm both hotels and customers and that the CNMC’s findings were incorrect.
Spanish National Court suspends Booking.com’s fine
The National Court accepted Booking.com’s request to suspend the fine until the appeal is resolved. This means the company is not required to immediately pay the fine or modify its business practices in Spain.
The court’s decision is a common step taken to prevent immediate financial harm to companies while legal proceedings continue. However, Booking.com was required to provide a financial guarantee covering the full €413.2 million penalty in case the appeal is unsuccessful.
Booking.com’s response to suspension of fine
Reacting to the suspension, Booking.com stated: “We are pleased that the National Court has completely suspended the CNMC’s decision while our appeal is being resolved” ( cited by FTN News). The company argues that its model benefits both hotels and consumers by boosting visibility and reservations rather than restricting competition.
Despite this, the CNMC maintains that Booking.com had an unfair advantage in the Spanish OTA market, where its market share was estimated to be between 70 and 90 per cent from 2019 until mid-2024. The regulator insists that the company forced hotels into restrictive price agreements and that its ranking system disadvantaged competitors.
Spain’s hotel industry
The Spanish hotel industry, led by organisations like the Spanish Confederation of Hotels and Tourist Accommodation (Cehat) and the Spanish Association of Hotel Directors (AEDH), has been closely monitoring the case. Both groups have sought legal avenues to quantify damages caused by Booking.com’s market dominance. They argue that its business practices have negatively affected pricing competition and hotel revenues in Spain, as reported by Cinco Días.
The appeal process could take months or even years to resolve. If the court ultimately sides with the CNMC, Booking.com will be required to pay the fine and make significant changes to its business operations in Spain. For now, the company remains fully operational.
For frequent travellers in Spain, Booking.com’s ongoing legal battle is unlikely to affect current bookings. However, if the company is eventually forced to change its pricing policies, it could lead to greater pricing transparency and more competitive hotel rates across alternative booking platforms.
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