On 21 October, the European Commission initiated formal proceedings to examine whether Booking.com may have violated the Digital Services Act (DSA). The investigation will assess the platform’s diligence in evaluating and mitigating risks from fraudulent listings and phishing scams.
The inquiry will also consider potential breaches of transparency, specifically regarding the labelling of paid listings that received preferential ranking in search results presented to users. Notably, the Commission designated Booking.com as a Very Large Online Platform under the DSA on 25 April 2023.
“Europeans should be able to book their holidays without fear of being scammed. The Digital Services Act sets clear responsibilities on platforms to address these risks, and we must ensure that the leading booking platform in Europe takes those responsibilities seriously,” said Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy.
The investigation will focus on the following areas:
1. Fraudulent and Non-Compliant Listings on Booking.com
The Commission will investigate whether Booking.com has effectively identified and managed risks related to illegal content, such as fake listings and impersonation fraud, which can harm consumer protection. The investigation will also assess the platform’s measures to mitigate these risks, including removing fraudulent listings.
2. The Commission will investigate phishing scams that exploit reservation and guest data from Booking.com.
The Commission will evaluate whether the company has adequately assessed the risks and implemented sufficient safeguards to prevent data misuse and fraudulent payments related to its messaging service and data-sharing practices.
3. Paid-for boosted listings not clearly identifiable as advertisements.
The Commission will investigate whether Booking.com is adhering to the advertising transparency requirements of the Digital Services Act (DSA). Accommodation providers can enhance the visibility of their listings by paying a higher commission, but users must be able to recognise these “boosted listings” as advertisements.
The Commission will evaluate if users can identify who is behind each ad, who paid for it, why they see it, and how to change their ad preferences. The DSA entitles users to know when an ad is displayed and where it comes from. Without this clarity, users cannot tell whether a listing is prominent because of relevance or paid visibility.
If proven, these issues may violate Articles 34, 35, and 26(1) of the DSA, which require online platforms to ensure ad clarity and address systemic risks. The Commission will prioritise this investigation, gathering evidence through requests, interviews, and inspections, and may take enforcement actions or accept commitments from Booking.com to resolve the issues.
Opening formal proceedings does not affect the outcome or other enforcement actions, nor does it exempt Digital Services Coordinators and EU authorities from supervising the DSA regarding the suspected Article 26(1) violation.
