Italy’s competition authority has launched an investigation into Booking.com over concerns about potentially unfair commercial practices tied to how hotels are ranked and displayed on its platform, according to the Wall Street Journal.
The regulator announced Wednesday that it is examining whether the online travel company gives preferential treatment to hotels participating in its “Preferred Partner” and “Preferred Partner Plus” programs in a way that could mislead consumers. Per the Wall Street Journal, these programs are marketed as highlighting accommodations based on service quality and value for money.
However, the Italian watchdog indicated that its preliminary findings suggest a different reality. According to the Wall Street Journal, inclusion in these programs—which benefit from higher placement in search results and increased visibility—may instead depend on whether hotels pay higher commissions to Booking.com.
Authorities said in a statement that such practices could distort competition by favoring businesses willing to pay more rather than those offering better quality or pricing to customers.
Booking.com responded by saying it is cooperating fully with the investigation. The company defended its model, stating that participation in its partner programs is voluntary and designed to maintain fairness for both providers and users. In its statement, Booking.com said its programs comply with consumer protection rules, “while ensuring a balance between the interests of our partners and allowing customers to continue benefiting from a wide range of choice.”
As part of the probe, Italy’s regulator confirmed it conducted inspections Tuesday at the offices of Booking.com’s Italian division. These actions were carried out with the support of Italy’s financial police, per the Wall Street Journal.
The investigation targets Booking.com B.V. as well as its subsidiaries Booking.com International B.V. and Booking.com (Italy) S.r.l. Authorities have not yet indicated when the inquiry might conclude or whether it could lead to penalties or regulatory changes.
Source: The Wall Street Journal
