Spain’s anti-trust authority has imposed a substantial fine of €413.2 million ($448 million) on Booking.com for exploiting its dominant position in the market over the past five years. The National Commission on Markets and Competition (CNMC) announced on Tuesday that Booking.com, a subsidiary of the New York-listed Booking Holdings, would be penalized with two separate fines of €206.6 million each.

According to the CNMC, Booking.com has leveraged its 70%-90% market share since 2019 to impose unfair conditions on hotels and stifle competition. This includes practices such as preventing hotels from offering lower prices on their own websites compared to those listed on Booking.com and imposing unilateral price discounts without hotel consultation.

The decision to fine Booking.com arose from complaints lodged by the Spanish Association of Hotel Managers (AEDH) and the Madrid Hotel Business Association in 2021. CNMC also revealed that Booking.com compels Spanish hotels to resolve disputes in the Netherlands, adding an extra layer of difficulty for local businesses.

Booking Holdings has expressed its intention to appeal the fines, arguing that the issue should be addressed under the European Union’s Digital Markets Act rules. A spokesperson for the company emphasized their disagreement with the CNMC’s findings and indicated that they would contest the decision in Spain’s high court.

In addition to these issues, Booking.com’s practices reportedly include incentivizing hotels to generate more revenue for the platform, thereby restricting competition from other service providers. This has further entrenched its market dominance, making it challenging for alternative platforms to attract hotel partners.

(Adapted from CNBCTV18.com)