European Hotels Sue Booking.com over Price Restrictions

More than 10,000 hotels across Europe have filed a class-action lawsuit against Booking.com. For nearly two decades, the platform prohibited hotels from offering lower rates on other channels, including their own websites. These practices were ruled illegal by the European Court in 2024, as reported by The Economic Times.

Price Parity Clause Deemed Unlawful

The collaboration with Booking.com relied on the so-called “best price guarantee,” preventing hotels from offering cheaper rates outside the platform — even for direct bookings. However, the European Court ruled in September 2024 that such terms violate antitrust laws and restrict competition. Although Booking.com has since removed those clauses following the EU Digital Markets Act, lawyers argue that damages from 2004 to 2024 still require compensation. Hotel operators claim they lost profits and control over pricing for years.

Germany and Earlier Legal Actions

Some countries had already started pushing back. In Germany, Booking.com stopped applying “narrow price parity” clauses back in 2016 under regulatory pressure. While a 2019 court briefly deemed them acceptable, the German Supreme Court overturned that in 2021, arguing that such restrictions hinder direct price competition and are not justified.

A Europe-Wide Legal Battle

The 2025 class-action lawsuit is unprecedented in scale. Filed in the Netherlands (where Booking.com is headquartered), the legal initiative is spearheaded by the Hotel Claims Alliance and coordinated by HOTREC, with hotel associations from over 25 European countries involved. Around 900 hotels in Ireland alone have joined the case.

The claim is open to other hotels that worked with Booking.com between 2004 and 2024. Initially set for July 31, the registration deadline has been extended to August 29 due to strong interest. Hotels can register through MyBookingClaim by uploading commission reports and signing a claims agreement. The litigation funder Stichting covers legal costs under a “no cure, no pay” model. Organizers estimate damages may reach up to 30% of commissions paid — around €750 million in Germany alone.

Industry Response

HOTREC President Alexandros Vassilikos said hoteliers had long suffered from unfair terms and excessive costs, hoping digital market abuses would no longer be tolerated. IHA Executive Director Markus Luthe added that the suit has “overwhelming support” and represents a step toward fairer online booking competition.

Booking.com has responded by stating the court ruling applies only to a specific case and that relevant terms have already been removed. It also claims hotel participation on the platform has always been voluntary. Still, the plaintiffs insist that the harm done over two decades deserves restitution.

Despite the lawsuit, Booking.com remains the dominant player in the rental market. According to Hotrec and the University of Applied Sciences of Western Switzerland, Booking Holdings held a 71% market share in European online bookings in 2023 — and 72.3% in Germany alone.