An Unpublished Verdict in the Industry
The CNMC has made history with a decision that marks a before and after in the online booking sector. The penalty imposed on Booking, of 413.24 million euros, is not only the highest to date in Spain, but is twice the previous largest fine recorded by a construction cartel in 2022.
Evidence of Abuse of Power
The legal proceedings that culminated in this verdict were initiated by two hotel associations in 2021, which filed complaints against Booking for its suppressive conduct and the unfavorable conditions imposed on its collaborators. These allegations led to an investigation that has validated concerns regarding the abuse of its dominant market position.
Market Dominance
Booking has maintained a market share varying between 70% and 90% in recent years, placing it as the main player, leaving competitors like Expedia and Airbnb with a considerably smaller presence in the field of accommodation brokerage.
Organized Anti-Competitive Conduct
The CNMC has identified two forms of abuse that justify the sanction. The first is the imposition of clauses that oblige hotels to maintain the lowest price on Booking, thus limiting their freedom of compression and competition. The second, an exclusivist abuse, where the way in which accommodations are classified on the platform benefits Booking, so competing institutions find their ability to compete difficult.
Repercussions and Immediate Future
In addition to the monumental penalty, the CNMC has issued corrective measures to ensure that Booking does not repeat these practices. With new European regulations established by the Digital Markets Act, illegitimate actions could face even more rigorous scrutiny in the future.
The Judicial Path Continues
Booking, as a response to the sanction, has decided to appeal before the administrative jurisdiction. The legal dispute will not only benefit the company in its defense, but it may also open a wider debate on the regulatory frameworks of the sector. The first instance will be a matter for the National Court, although it is expected that the case could rise to the Supreme Court, pointing to an uncertain future for all parties involved.
