Booking.com tagged as gatekeeper, faces tighter EU digital rules
14 May 2024 06:07
The European Commission acknowledged on Monday that the Booking.com platform, widely used for accommodation rentals, now falls under the category of a "gatekeeper." Consequently, it must adhere to the tighter regulations stipulated by the Digital Markets Act (DMA).
"This is favourable news for holidaymakers, as they will benefit from a broader selection, and hotels will gain from increased business possibilities," stated Vice-President of the EC Margrethe Vestager, who oversees competition matters.
Booking designated as a "gatekeeper"
Therefore, Booking.com has a six-month window to align with the DMA requirements. The regulation aims to curb the potential abuse of dominant market positions by large online platforms, such as unfair treatment of businesses operating via these platforms (in Booking's case, these would be hotels).
The six-month adjustment period does not cover all DMA provisions. Specific rules affecting Booking will be effective immediately, including the obligation to notify Brussels of any significant mergers. This stipulation is particularly critical given that in September 2023, the EC disapproved Booking.com's proposed merger with technology firm eTraveli.
For breaches of DMA rules, the EC may levy a fine of between 10% and 20% of the company’s total annual revenue.
What defines a "gatekeeper"?
Under the DMA, a "gatekeeper" is identified as a company with an annual turnover above £6.5 billion within the Union and monthly user figures exceeding 45 million. In addition to these quantitative benchmarks, the Commission applies qualitative considerations relevant to the firm's impact on European commerce.
Booking.com has become the seventh entity to be designated as a gatekeeper. Brussels identified the initial six in September 2023, prompting executives from Alphabet (Google's parent), Amazon, Apple, ByteDance, Meta, and Microsoft to report by March on their compliance with the new legislation. By the end of April, the EC extended this list to include iPadOS, Apple’s tablet operating system.
Furthermore, the EC also disclosed on Monday that the entities behind the sale and trading of advertising platform X Ads and TikTok Ads do not qualify as "gatekeepers." Despite surpassing the quantitative criteria, the EC concluded these services do not wield substantial influence.
