Berlin court rules hotels can claim damages from Booking.com

Over 1,000 German hotels confirmed to have compensation rights for anticompetitive price parity clauses used across Europe

The Berlin Regional Court has confirmed that 1,099 German hotels are entitled to claim damages from Booking.com for the use of price parity clauses between 2013 and early 2016. The court found that these clauses restricted hotels’ pricing freedom and distorted competition in online distribution, establishing Booking.com’s liability without yet determining compensation amounts.

Booking.com has welcomed parts of the ruling, noting that some claims were rejected and reiterating its view that parity clauses benefited travelers and partners. For hoteliers, the judgment underscores both the legal shift away from parity restrictions and the continuing debate over platform power in hotel distribution.

Key takeaways

• Hotels’ pricing freedom reinforced: The court ruled that Booking.com’s wide and narrow parity clauses unlawfully restricted hotels from offering better prices through direct or alternative channels.
• Direct booking incentives were limited: Parity clauses prevented hotels from passing commission savings to guests through lower direct rates, weakening the economics of direct distribution.
• Revenue management flexibility constrained: Hotels’ ability to use last-minute discounts and tactical pricing to sell remaining inventory was impaired by the need to match reduced rates on Booking.com while still paying commission.
• Liability confirmed, damages still open: The ruling establishes Booking.com’s responsibility but leaves the calculation of individual hotel losses to future proceedings.
• Booking.com disputes the interpretation: Booking.com said it is satisfied with the decision, highlighting that certain claims were rejected and arguing that its former parity clauses did not violate competition law and supported competition for travelers and partners.
• European relevance for hoteliers: The judgment adds to a broader legal trend across Europe that strengthens hotels’ position in challenging parity rules and reassessing their long-term distribution strategies.

Source: PPC Land

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