Booking.com suffers legal defeat in EU over best price clauses
The OTA suffered a defeat on Thursday with its former best-price clauses before the EU's top court, the European Court of Justice (ECJ)
The European Court of Justice (ECJ) has ruled that prohibiting hotel owners from offering lower rates through their own distribution channels than those available on Booking.com does not qualify as an "ancillary restraint" under EU law. Such restrictions are only allowed under the EU's strict competition rules if they are objectively necessary and proportionate to the operation of the business, which was not the case with Booking.com, the court said.
Key takeaways
- Booking.com expressed disappointment with the decision and maintained that the price restrictions were necessary and proportionate;
- Booking.com's contracts with hotels listed on its platform prevent them from offering lower rates through other channels;
- A court in Amsterdam, where Booking.com is headquartered, asked the ECJ to clarify whether these agreements violated EU antitrust rules.
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