Spain: accused of abuse of power, Post sentenced to a record fine of 413 million euros

by time news

2024-07-30 14:38:54

A fine of more than 400 million euros. The spokesperson for the National Markets and Competition Commission (CNMC) announced on Tuesday that it has imposed a record fine on the Dutch hotel reservations platform, Booking.com.

Accused of “degradation of the highest status” to the destruction of the hotel industry in Spain, this fine – against which the association confirmed that it has appealed – is the largest that has been imposed in Spain for competitive bidding practices. It comes as the tourist season is in full swing in the country: it is the second most visited destination in the world, after France.

“Unfair” trade policy.

In a press release, the Spanish competition police justified its decision by the commercial policy which considers the “unfairness” of the Post, which has imposed “a number of conditions” considered unfair to Spanish hotels listed on your platform.

The CNMC therefore considers “a price issue” that prevents hotels from offering their rooms, on their own sites, at a lower rate than that of the Post and the fact that the platform “saves the possibility of reduction” in the unit “price ” of the rooms. .

He also pointed to the “lack of transparency” of the Dutch giant to partner hotel establishments, which prevents the latter “from making informed decisions” about their participation in the platform’s preference programs. However, the commission stated that it had ordered the recording of “a number of commitments” to guarantee that these actions “do not continue” “in the future”.

Sign “strongly disagree” with the survey

In a statement sent to AFP, the Post assures that it is “strongly aware of the conclusion of the investigation” by the CNMC, which was carried out after a complaint from the Spanish Association of Hotel Directors (AEDH). Shortly after, the platform announced that it decided to “appeal this unexpected decision”.

“Booking.com operates in a very competitive sector and an industry that is characterized by great choice for businesses and consumers alike”, but “the decision made today does not take this choice into account”, the group continued, which he opposes the “lack of interaction”.

“We are convinced that the Digital Market Act of the European Union (DMA) represents the appropriate framework to discuss and address the main concerns expressed by the CNMC, which is an opportunity to obtain solutions applicable to the whole of Europe instead of the country by country. emphasized the Dutch team on Tuesday.

The DMA, which came into force on March 7, has imposed a new series of restrictions and restrictions on digital companies in order to increase competition in this sector. It is the subject of a fierce fight between the European Commission and the companies concerned, some of which have been sued. In addition to Post, many digital giants are now forced to use these new rules, such as Amazon, Apple, Meta, and the social network TikTok.

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