According to the associations, these clauses have significantly restricted price competition, led to excessive commission demands, and undermined the entrepreneurial freedom of hotels. In many cases, hotels were prohibited from offering more attractive rates or better availability on their own websites. On September 19, 2024, the European Court of Justice confirmed that these practices violate EU competition law, paving the way for affected hotels to potentially claim compensation.
Hotels Invited to Join the Legal Action
“European hoteliers have endured unfair conditions and inflated costs for far too long. Now is the time to take a stand and seek justice. This collective initiative sends a clear message: abusive digital market practices will not go unanswered,” said Alexandros Vassilikos, President of HOTREC.
The legal proceedings are being coordinated by the Hotel Claims Alliance Foundation. The lawsuit will be filed in courts in the Netherlands, allowing for consistent and efficient legal enforcement across Europe. A team of experienced competition lawyers, litigators, and economists is managing the case, which has already led to a landmark ruling by the ECJ in September 2024.
All affected hotels across Europe are encouraged to join the claim online by no later than July 31, 2025.
As Markus Luthe, Managing Director of the German Hotel Association (IHA) and Chair of HOTREC’s Distribution Task Force, explains, over 2,000 hotels in Germany joined the “Be Part of It” initiative as early as 2020. Legal proceedings for these hotels are already underway in Amsterdam and Berlin, so no further registration is needed for them.
A Long-Standing Dispute
The dispute over rate parity clauses stretches back several years. In 2015, the German Federal Cartel Office determined that Booking.com’s use of such clauses was in violation of antitrust laws, significantly limiting fair competition among hotels.
Following this, the German Hotel Association (IHA) entered into settlement discussions with the platform—unfortunately without success. Booking.com unilaterally ended negotiations and instead sought a negative declaratory judgment in the Netherlands, aiming to have courts declare that German hotels were not entitled to compensation. As part of this strategy, the company filed claims against several hundred German hotels before the District Court of Amsterdam.
A key outcome of this ongoing case was the ECJ’s September 2024 decision. According to the IHA, the ruling establishes a basis for all European hotels to pursue compensation—precisely the goal of the newly initiated collective lawsuit.
Widespread Support Across Europe
The legal action is receiving widespread backing: participating countries include Belgium, Denmark, Germany, Estonia, Finland, Greece, Iceland, Italy, Ireland, Croatia, Latvia, Liechtenstein, Lithuania, Luxembourg, the Netherlands, Norway, Austria, Poland, Portugal, Romania, Switzerland, Slovakia, Slovenia, Czech Republic, Hungary, and Cyprus.
This united European front sends a strong signal that the hospitality industry stands together in its call for fair and transparent conditions in the digital marketplace.
Stay tuned for more updates in our Blogs to keep up with top news in the hotel Industry.
Photos Source: ChatGPT Image
