The Italian competition authority AGCM is investigating whether Booking.com is abusing its dominant market position to hinder competition from other online hotel reservation services.
According to the AGCM, Booking.com offers benefits to hotels that participate to the Recommended Partners Program. They get more visibility in the search results, but pay a higher commission and are forced by Booking.com to offer lower prices than on their own website. When Booking.com finds lower prices elsewhere, it matches hotels' prices without their consent.
The AGCM says this strategy makes it difficult for other online travel agencies to compete. According to the competition authority, this has negative consequences for consumers: they pay higher prices and have less choice. According to the AGCM, hotels are also experiencing negative consequences.
As part of the investigation, the AGCM carried out inspections at Booking.com. The antitrust unit of the Italian financial police was also present. Booking.com told Reuters it is 'fully cooperating' with the AGCM and the police.