Booking Holdings faces a major legal challenge as over 10,000 European hotels unite in a collective lawsuit demanding compensation for two decades of alleged unfair practices. The action follows a landmark 2024 European Court of Justice ruling that deemed "best price clauses" anti-competitive, which previously barred hotels from offering lower rates on their own websites than on Booking’s platform. The company’s stock dipped 0.86% in pre-market NASDAQ trading to $5,340, reflecting investor unease.
Market Dominance Under Scrutiny
With a 71% share of Europe’s online travel market—72.3% in Germany—Booking’s dominance is central to the case. Hotels argue they were forced into dependency, with direct bookings declining by 8% in Germany over a decade. Coordinated by a Dutch court, the lawsuit could result in billions in damages, amplified by support from 30+ national hotel associations. Despite the backlash, many hotels remain reliant on Booking’s global reach, highlighting an industry-wide paradox. The deadline to join the claim was extended to August 29 due to overwhelming participation.
