EU Designates Booking.com as Gatekeeper Under New Competition Rules

Introduction to EU Digital Markets Act (DMA)

The European Union has enacted stringent competition rules under the Digital Markets Act (DMA), targeting major digital platforms to ensure fair competition. The DMA is part of a broader effort by the EU to regulate the digital economy and curb the dominance of large tech companies.

Booking.com’s Designation as a Gatekeeper

Hotel and apartment rental website Booking.com has been officially designated as a gatekeeper under the EU’s DMA, according to a statement by the European Commission on May 13. This designation follows Booking.com’s notification to the Commission on March 1, indicating that its services potentially meet the thresholds set by the DMA.

Implications of the Gatekeeper Designation

As a gatekeeper, Booking.com must adhere to stricter regulations designed to promote competition and facilitate user mobility between competing services. The designation reflects Booking.com’s significant influence within the European tourism ecosystem, particularly given its extensive listings of over 28 million accommodations, including more than 6.6 million homes and apartments.

EU Commission’s Oversight and Market Investigation

Thierry Breton, EU Commissioner for the Internal Market, emphasized the importance of ensuring compliance with DMA obligations within a six-month period. The European Commission also announced a market investigation to assess the rebuttal submitted by online platform X, which claimed it did not qualify as a gatekeeper. This investigation is set to conclude within five months. Notably, the Commission decided not to designate X Ads and TikTok Ads as gatekeepers.

Previous Designations and Ongoing Challenges

In September of the previous year, the EU had already designated six tech giants—Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft—as gatekeepers. These companies were required to comply with DMA obligations by ensuring a fair online environment for businesses and consumers. Some of these companies, including TikTok and Meta, have appealed their designations. Meta specifically contested the gatekeeper status for its Messenger and Marketplace platforms but accepted it for Facebook, Instagram, and WhatsApp.

Compliance Investigations

The European Commission has initiated several non-compliance investigations. These include:

• Alphabet: Investigations into Google’s practices in Google Play and Google Search.
• Apple: Examination of rules in the App Store and Safari.
• Meta: Scrutiny of the “pay or consent model”.

Ongoing and Future Checks

The Commission is also conducting additional checks on Amazon’s self-preferencing practices and Apple’s alternative app distribution methods and business models. These steps are part of the EU’s commitment to enforcing the DMA and ensuring a level playing field in the digital market.

Conclusion

Booking.com’s designation as a gatekeeper under the DMA marks a significant step in the EU’s regulatory efforts to foster competition in the digital marketplace. As the Commission continues its investigations and oversight, the impact of these regulations will become more apparent, shaping the future landscape of digital services in Europe.