The Swiss Competition Commission has ruled that the online travel platform Booking.com must significantly reduce the commissions it charges hotels in Switzerland. The decision follows concerns over what regulators describe as unfairly high commission rates—an outcome that has been met with approval from the hotel industry in both Switzerland and Germany.
Commission Rates to Be Reduced by Approximately 25%
According to Switzerland’s price oversight authority, Booking.com is required to lower its commission fees by nearly a quarter. This development comes after negotiations between the regulator and the platform failed to yield a mutual agreement. Booking.com has announced plans to appeal the ruling in court.
The platform typically earns a commission for each hotel booking it facilitates. However, Swiss regulators found that the company had leveraged its dominant market position to impose “excessively high” commission rates, which they deemed abusive.
Positive Response from the German Hotel Industry
The ruling has resonated beyond Swiss borders. Markus Luthe, Chief Executive of the German Hotel Association (IHA), welcomed the Swiss authority’s intervention:
“The decision by the Swiss price regulator regarding Booking.com’s excessive commissions is an encouraging signal for the entire European market.”
The IHA has long advocated for a review of Booking.com’s commission practices in Germany as well. Luthe pointed to ongoing legal proceedings in Berlin, Karlsruhe, and Amsterdam aimed at addressing similar concerns.
Booking.com Responds to the Ruling
Booking.com has expressed its disagreement with the decision, stating:
“We do not agree with a forced reduction in the cost of a service that is entirely optional.”
The company argues that hotels are under no obligation to list their rooms on its platform. It has confirmed that there will be no changes to the current commission structure while the appeal process is ongoing.
Broader Legal Context Across Europe
In a separate development last September, Booking.com faced a setback at the European Court of Justice (ECJ). The court ruled that so-called “best price clauses” are not automatically exempt from EU competition law—an important decision that supports the interests of hotel operators across Europe.
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