In May this year, the European Commission designated Booking as an Access Guardian under the Digital Markets Regulation. Following this, Booking had six months to comply with its obligations under the Regulation. Booking has now implemented changes to comply. What does this mean for users?
Parity clauses
If you’ve ever booked through the Booking website, you’ll have noticed the price match option – that is, if you found a better deal on the same hotel outside of the Booking website, Booking would match the price for you. At the same time, Booking’s terms and conditions did not allow hotels (and other service providers) to offer different prices and conditions on their websites or with other intermediaries. This is now over, as this is so-called parity clauses which the Digital Markets Regulation prohibits.
Booking must also not introduce measures with the same effect as the parity clause – i.e. it must not penalise or disadvantage providers who offer lower prices on other sites than on the Booking platform.
For example, commission rates must not be increased or a provider’s offer must not be excluded if it offers different prices on other websites. This allows other platforms to compete on fairer terms, which can lead to innovation and lower prices.
Better position of service providers
Newly, data access has been improved for providers – they used to access user data only through the Booking interface, but now they can transfer the data to their own platforms. This will allow them to create personalised offers and increase their competitiveness in the market. Simply put, they will be less dependent on Booking’s platform.
If the European Commission finds that Booking’s solutions do not comply with the Digital Markets Act, it may take enforcement action. It can impose fines of up to 10% of a company’s total worldwide turnover in the event of an infringement.
If you would like more information in this regard, please do not hesitate to contact us.
This article is for informational purposes only and does not constitute legal advice or guidance for any particular case.