There is currently a large-scale class-action lawsuit underway in the Netherlands, brought by more than 10,000 European hotels, including German establishments, against Booking.com for its historical “best price” (parity) clauses. Here’s a detailed summary of the case and the issues involved:
Background
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Booking.com had imposed “rate parity” clauses requiring hotels to offer the same or lower rates on Booking.com compared to their own website or other platforms—restricting hotels from undercutting prices anywhere else. These clauses were introduced around 2004 and evolved over time.
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In 2015, Germany’s Federal Cartel Office banned even the narrow form of these parity clauses, and the German Federal Supreme Court upheld the decision in May 2021.
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In September 2024, the European Court of Justice (ECJ) ruled that both wide and narrow parity clauses violated EU competition law—finding they were neither necessary nor proportionate for Booking.com’s business model and hindered competition—though stopped short of labeling them outright illegal under EU law.
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Compliance with the EU Digital Markets Act (DMA) led Booking.com to remove all parity clauses by July 2024.
Key Issues at Stake
1. Antitrust / Competition Violation
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The ECJ and German courts found the parity clauses restricted price competition among OTAs and harmed hotels’ own direct channels.
2. Damages for Historic Period (2004 – 2024)
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Hotels claim they overpaid in commissions and lost direct bookings due to these clauses. Estimated damages could amount to ~30% of total commissions plus interest.
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The lawsuit covers a 20-year period, seeking compensation for years of restricted pricing practices.
3. Organizational & Procedural Structure
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The legal action is coordinated by the Hotel Claims Alliance, supported by HOTREC (representing 47 hospitality associations across 36 countries, including Germany’s IHA).
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The case is filed at Booking.com’s registered seat in Amsterdam, simplifying jurisdiction and allowing a centralized collective action.
4. Support & Participation
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The filing deadline for hotels to join has been extended (initially July 31, now until August 29, 2025). Participation is free and risk‑free—no costs unless the case succeeds.
5. Booking.com’s Position
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The company maintains the ECJ judgment only pertains to historic German cases (2006–2016) and argues the clauses weren’t anti‑competitive per se under EU law. Booking.com disputes the hotels’ interpretation and says it wasn’t involved collectively informed of this lawsuit.
Summary Table
|
Issue |
Description |
|---|---|
|
Parity Clauses |
Best‑price requirements limiting hotels from undercutting Booking.com |
|
Legal Findings |
German authorities banned clauses; ECJ confirmed violation in 2024 |
|
Damages Period |
Hotels seek compensation for 2004–2024 |
|
Coordination |
Hotel Claims Alliance & HOTREC coordinate action in Netherlands |
|
Participation Terms |
Open to >10,000 hotels; free registration; deadline August 29, 2025 |
|
Booking.com’s Defense |
Disputes interpretation; claims clauses not proven anti‑competitive |
This case started with litigation between Booking.com and individual German hotels over parity clauses used between 2006 and 2016, prompting ECJ reference. Now it has grown into a pan‑European effort seeking damages under EU competition law based on the 2024 ECJ ruling. The Netherlands court will now adjudicate collective damages claims.
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