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Booking.com Faces Potential Multi-Million Euro Damages Claims from European Hotel Groups

Booking.com could face damages claims worth millions of euros after 26 European hotel associations, including Greece’s, said they would support members pursuing litigation following a European Union court ruling on hotel pricing restrictions. The European Court of Justice (ECJ) last year found that so-called “parity clauses” used by the travel platform—contractual terms preventing hotels from […]

Booking.com could face damages claims worth millions of euros after 26 European hotel associations, including Greece’s, said they would support members pursuing litigation following a European Union court ruling on hotel pricing restrictions.

The European Court of Justice (ECJ) last year found that so-called “parity clauses” used by the travel platform—contractual terms preventing hotels from offering lower prices on their own websites or rival platforms—were not inherently anti-competitive under EU law. However, the court also said such clauses may reduce competition and are not necessary for business.

The judgment came after Booking.com sought a declaration from a Dutch court on the legality of its parity clauses, prompting the Amsterdam court to request guidance from the ECJ.

Brussels-based industry group HOTREC, which represents 47 hospitality associations across 36 countries, said on Friday it would back hoteliers in seeking damages.

“European hoteliers have long endured unfair conditions and inflated costs. Now is the time to stand together and seek redress,” said HOTREC President Alexandros Vassilikos.

Booking.com said it had not been notified of any EU-wide legal action and disputed interpretations of the ruling.

“The ECJ judgment relates specifically to questions from the Amsterdam District Court in litigation between Booking.com and several German hotels concerning parity clauses used in Germany from 2006 to 2016,” a spokesperson said.

“The court did not conclude that Booking.com’s parity clauses were anti-competitive or had an effect on competition. The Amsterdam Court will now decide on the German clauses specifically,” the company said.

Hotel operators have until July 31 to join the litigation.

The associations supporting the legal action represent hoteliers from Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia and Switzerland.

 

 

 

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