The EU’s Digital Markets Act, one of the toughest regulatory measures targeting tech giants, aims to ensure fair competition and consumer choice.
Booking.com must adhere to these regulations, which require firms to moderate content, promote fair competition, and enable easier switching between services for consumers. This move is part of the EU’s broader effort to limit the market dominance of major tech platforms.
In May, the European Commission identified Booking.com as meeting the criteria for a gatekeeper. Companies with more than 45 million monthly active users and a market capitalisation exceeding 75 billion euros fall under this designation. Such companies provide core platform services vital for business users.
Booking.com stated that it had made significant efforts to comply with the new rules. “We are confident that our compliance solutions satisfy the requirements of the DMA and deliver the experience that both travellers and our partners expect of us,” the company noted in a blog post. It also emphasised its commitment to constructive dialogue with the European Commission and stakeholders.
Failure to comply with the DMA can result in heavy penalties. The EU can impose fines up to 10% of a company’s global turnover, increasing to 20% for repeated violations. The Commission also holds the power to restrict takeover activities of non-compliant companies. This regulatory move signals a new era of oversight for major tech platforms.
