top of page
Writer's picturemeowdini

Booking.com Designated as EU ‘Gatekeeper’ in New Digital Markets Act Enforcement

Booking.com is now classified as a "gatekeeper" under the EU's Digital Markets Act, joining the ranks of tech giants like Google and Meta. The travel platform has six months to comply with new regulations aimed at ensuring fair competition.

Booking.com has joined the ranks of tech giants such as Google and Meta by falling under the EU’s extensive online competition rules. Known as the Digital Markets Act (DMA), this law aims to create a level playing field in the digital market by establishing clear rights and obligations for large online platforms, referred to as "gatekeepers."



A modern office building representing Booking.com, now designated as a 'gatekeeper' under the EU's Digital Markets Act, highlighting its significant role in the European tourism and digital markets industry.


What Is the Digital Markets Act?

The DMA is designed to tackle monopolistic practices by imposing strict regulations on large digital platforms that serve as gatekeepers. These gatekeepers are defined as companies with over 45 million monthly end users within the EU, more than 10,000 business users per year, and a market cap of at least €75 billion.


Thierry Breton, EU Commissioner for Internal Market, stated, “Booking is an important player in the European tourism ecosystem and is now also a designated gatekeeper.” This designation follows the Dutch company’s self-assessment submitted on March 1, where it was determined that Booking.com meets all the necessary thresholds.



Six Months to Comply

Booking.com, like other gatekeepers, now has six months to comply with the DMA’s list of regulations. These include a ban on targeted advertising outside of the gatekeeper’s core platform and ensuring non-discrimination against business users who wish to offer their services under different conditions or prices elsewhere.

Some obligations are effective immediately, such as informing the Commission of “any intended concentration” in the digital sector. Failure to comply could result in fines of up to 10% of Booking’s total worldwide turnover, which could escalate to 20% for repeated breaches. The EU also holds the power to force the platform to sell parts of its business if necessary.


Booking.com’s Response

A Booking.com spokesperson commented via email, “We have been working with the European Commission for some time as we anticipated today’s decision. We are reviewing their designation decision now and will continue to work constructively with them as we develop solutions to comply.”


A Historical Transformation

Founded in 1996 in Amsterdam, Booking.com has revolutionized the travel accommodation industry. With 28 million accommodation listings globally, the company estimates that its active end users in the EU exceeded 45 million from August 2023 to January 2024. The current market cap of Booking Holdings Inc. stands at $127.05 billion (€117.7 billion).


Key Points

  • EU Digital Markets Act (DMA): Aims to ensure fair competition in the digital market.

  • Gatekeeper Designation: Booking.com joins Google and Meta as a gatekeeper under DMA.

  • Regulations: Booking.com has six months to comply with new rules, including bans on certain advertising practices and non-discrimination against business users.

  • Compliance Risks: Non-compliance could result in significant fines or forced business sales.

  • Industry Impact: Booking.com continues to play a pivotal role in the European tourism ecosystem.


Booking.com’s inclusion under the EU's Digital Markets Act marks a significant step in regulating digital platforms to ensure fair competition. With the company’s substantial influence in the travel industry, compliance with these new regulations will be crucial in maintaining a balanced digital marketplace.



Comments


bottom of page