EU Court Challenges Booking.com's Hotel Rate Restrictions

The European Court of Justice ruled that Booking.com's restrictions on hotels offering lower rates on their websites or rival sites are unnecessary and could deter competition. However, these parity clauses were deemed not anti-competitive under EU law. The decision follows increasing regulatory scrutiny and bans from various European authorities.

In a significant ruling, the European Court of Justice declared that Booking.com's restrictions against hotels offering lower rates on their own websites or rival platforms are unnecessary and could hamper competition within the industry.

Despite these findings, the court also determined that parity clauses embedded in agreements between online booking sites and hotels are not anti-competitive under European Union (EU) law. The practice, which has faced complaints and regulatory examination across Europe, sparked concerns for consumer welfare.

The ruling stems from a case involving Booking.com, after the company sought clarity on the validity of these clauses. This follows bans enforced by Germany's antitrust watchdog and new rules under the Digital Markets Act that prohibit such measures for large online platforms.

(With inputs from agencies.)