Italy’s competition watchdog announced on Friday that it has initiated an investigation into Booking.com to determine whether the travel website is exploiting its dominant market position.
The watchdog, known as AGCM, expressed concerns regarding Booking.com’s treatment of hotels participating in its Preferred Partner Programme, suggesting that such practices could impede competition in the online hotel brokerage and reservation services sector, particularly on a nationwide scale.
According to AGCM, Booking.com’s strategy may disadvantage other online travel agents, resulting in adverse effects on accommodation providers and ultimately leading to higher prices and reduced choices for consumers.
The authority revealed that Italian tax police, Guardia di Finanza, conducted searches at Booking.com’s offices in Italy as part of the investigation.
A spokesperson for Booking.com stated, “We are fully cooperating with the Guardia di Finanza and the Italian competition authority who visited our offices in Italy yesterday.” However, the company emphasized its belief that competition concerns should be addressed directly with the EU, aligning with current regulatory proposals, rather than being handled separately on a country-by-country basis.
