This is because domestic hotels have violated their competition laws by pressuring them not to provide rooms at a lower price than Booking Dotcom. Booking Dotcom said it has been fined 486 million euros by Spanish regulators. The amount is tentative and is expected to be finalized in the coming months.
Spanish authorities believe Booking abused its market power to prevent hotel prices from falling below the level suggested by Booking Dotcom. Booking said, “Disappointing,” adding, “If you allow a higher price (than Booking Dotcom), the damage will be done to the consumer.” “We will appeal once the amount of fines that are unprecedented is finalized,” he said. Analysts say such measures are in line with the Digital Market Act, which is set to take effect in full next month. The DMA was introduced at the European Union level to prevent anti-trust activities by platform operators. It targets companies whose annual sales and market capitalization in the previous three fiscal years exceeded 7.5 billion euros and 75 billion euros, respectively, and whose monthly active users in the EU exceed 45 million. Booking, whose market value is 135 billion dollars, argues that the DMA applied across the EU and anti-trust regulations in individual member states are double burdensome. CEO Glenn Fogel criticized the DMA, which designates and regulates companies over a certain size as a “gatekeeper,” saying that it is like handcuffing companies.
JENNIFER KIM
US ASIA JOURNAL
