The Digital Markets Act, effective since last year, bans large online platforms, including Booking.com, from using retail parity clauses. Credit: Jas Rolyn on Unsplash.

The EU’s top court has voiced concerns over Booking.com’s curbs on hotels against offering lower rates on their or rival websites, suggesting this may hinder competition, reported Reuters.

The Court of Justice of the European Union (CJEU) stated that while these restrictions are not anti-competitive under EU law, their necessity is questionable.

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This practice, known as parity clauses, is common in contracts between online booking sites and hotels. It has led to complaints and regulatory scrutiny across Europe, with concerns about limited choices for consumers.

Germany’s antitrust watchdog has prohibited such clauses, contrasting with the EU’s stance, which permits them only on hotels’ websites.

The Digital Markets Act, effective since last year, bans large online platforms, including Booking.com, from using retail parity clauses.

The CJEU highlighted a lack of evidence to justify these clauses, noting they may reduce competition, disadvantage small platforms and new entrants, and are not essential for Booking.com’s economic viability.

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Despite these concerns, the court also concluded that the clauses cannot be deemed anti-competitive under EU antitrust laws.

Booking Holdings has expressed disappointment with the ruling, defending the clauses as necessary and proportionate for their accommodation partners and emphasising the competitive nature of the market.

Meanwhile, Booking.com made headlines last year when the BBC reported that cybercriminals are increasingly targeting the hotel booking platform’s customers, with ads on dark web forums seeking assistance in identifying potential victims.

Hackers are reportedly offering up to $2,000 for hotel login details, with customers being defrauded since at least March 2023.