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Hungary fines Booking.com again for ‘unfair’ practices

Hungary fines Booking.com again for ‘unfair’ practices

By AFP July 16, 2024 | 12:06 a.m. PT

Online travel agency Booking.com was fined a second time on Monday by the Hungarian competition authority for failing to put an end to its “unfair” business practices, including putting psychological pressure on its customers.

The logo of the travel agency Booking.com on a building. Illustration photo by Pixabay

The logo of the travel agency Booking.com on a building. Illustration photo by Pixabay

In 2020, the Amsterdam-based company was fined 2.5 billion forints ($7 million) by the Hungarian Competition Authority (GVH) for aggressive sales tactics.

On Monday, authorities imposed an additional penalty of 382.5 million forints on Booking.com after a follow-up investigation showed the company had continued its unfair practices.

“Booking has not fully complied with its obligations to end previous violations,” the watchdog said in a statement.

The agency found that the website still put “psychological pressure” on consumers to book accommodation quickly.

She also pointed out that the travel agency was putting Hungarian users at a disadvantage by not offering them the same cheaper and non-cancellable alternatives on its listings.

Booking.com did not “admit the violations” and only “ceased its violations” during the final stage of the investigation, the watchdog said.

In a statement sent to AFPThe travel agency said it was “disappointed” by the results but pledged to provide “more clarity” to consumers.

Booking.com, whose parent company Booking Holdings is headquartered in the United States, is a dominant player with a market share in Europe of more than 60 percent.

In May, the European Union added the travel agency to its list of digital companies large enough to be subject to stricter competition rules, giving the company six months to prepare to comply with the landmark Digital Markets Act (DMA).

These rules aim to level the playing field in the digital market, ensuring EU users have more options when choosing products.

Brussels said tighter regulation of Booking.com would mean holidaymakers would “start to benefit from greater choice” and hotels would “have more business opportunities”.