Spain’s National Court has temporarily suspended the €413.2 million fine imposed on Booking.com by the National Commission for Markets and Competition (CNMC) while it reviews the company’s appeal.
The ruling grants the American travel platform a reprieve as it challenges allegations of abusing its dominant market position in the online travel agency (OTA) sector.
The CNMC initially announced the penalty on July 30, 2024, after concluding that Booking.com engaged in anti-competitive practices that restricted market entry for other online travel agencies. The fine was issued following complaints from the Spanish Association of Hotel Directors and the Madrid Hotel Business Association, which accused the platform of unfairly prioritizing hotels with higher bookings and imposing restrictive pricing policies on Spanish accommodation providers.
Booking.com’s Response and Legal Battle
Booking.com filed an appeal against the decision on October 30, 2024, arguing that the CNMC’s conclusions were flawed and that the fine would have a negative impact on both hotels and consumers. The company welcomed the National Court’s decision to suspend the penalty while the legal proceedings continue.
“We are pleased that the National Court has completely suspended the CNMC’s decision while our appeal is being resolved,” stated Booking.com, reaffirming its commitment to the Spanish market despite its ongoing legal fight. The platform insists that its business model benefits hotels by driving visibility and reservations, rather than restricting competition.
Allegations of Market Abuse
The CNMC’s investigation revealed that Booking.com controlled between 70% and 90% of Spain’s OTA market during the period under review, which began on January 1, 2019. The regulatory body imposed the fine based on two major infractions:
- Unfair commercial conditions: Spanish hotels were allegedly forced to accept price clauses preventing them from offering lower rates on their own websites than those listed on Booking.com. The platform also reserved the right to unilaterally adjust hotel prices on its own channels.
- Restricting competition: The CNMC argued that Booking.com’s ranking and loyalty programs, such as Preferred, Preferred Plus, and Genius, favored certain hotels without sufficient transparency, making it harder for competing OTAs to enter or expand in the Spanish market.
Each of these violations carried a fine of €206.6 million, bringing the total penalty to €413.2 million.
What’s Next for Booking.com?
The suspension of the fine does not mean that Booking.com is in the clear. The National Court will now review the appeal, a process that could take months or even years. If the court ultimately rules in favor of the CNMC, the fine could be reinstated, forcing the platform to make significant changes to its pricing policies and ranking algorithms in Spain.
For now, Booking.com remains operational in Spain and continues to challenge what it calls an “unprecedented decision.” However, the case could have broader implications for the global OTA market, setting a precedent for how regulators handle dominant players in the travel industry.
