European hotel owners are joining a class action suit against online platform Booking.com, with more than 10,000 hotels now signed a compensation suit.
For the Association of Hotels, Restaurants and Cafe in Europe Hotrec, which represents the industry within the European Union, the owners of the hotel will demand compensation for the damage between 2004 and 2024, resulting in the “best-value” segment that prevent the hotel from offering room on their sites.
Hence the initiative is supported by 30 National Hotels associations, including the German Hotel Association (IHA).
The Netherlands-based booking.com used the clause in a way, which is called a “free-rider” booking to stop, which it defines as a customer who discovers a hotel on Booking.com, but then booking directly with the hotel and not with the online legend.
Thesis Claus required a hotel not to offer rooms at low prices on other platforms including their websites.
What is the origin of claims?
The hotel claims to be a suit brown before the Amsterdam court that the coalition claims and 30 more hotels supported by Hotreke and the hotel associations decided to illegally discover the European Court’s decision on 19 September 2024 of Justice (ECJ) of the European Court.
The ECJ ruled that online platform partners can work without imposing search restrictions on the hotel.
Booking.com removed the European Union Digital Markets Act in 2024 with a clause.
According to Hotreke President Alexandros Wasilicos, “European hotel businessmen suffer from long -term inappropriate conditions and excessive costs.”
“This joint initiative sends a clear message: Abive practice in the digital market will not be tolerated by the hospitality industry in Europe.”
Hotrec on Monday announced the expansion of the deadline to join the suit against Booking.com by 29 August.
“Class action is getting overwelling support,” IHA Managing Director Marcus Luthe told Germany’s DPA news agency.
What has Booking.com said?
Booking.com said that according to reporting by DPA, the official case has not come in.
In response to an inquiry, the company said, “This is a Hotreke’s statement, not the class action filed,” the company said in response to an investigation.
Therefore, the hotel associations rejected legal arguments on the basis of claims and ECJ rule.
The statement said, “Each of our housing partners are free to determine their own distribution and pricing strategies and can offer their rooms wherever they choose.”
Edited by: Wesley Rahan
