The European Commission has opened a formal investigation into Booking.com to establish whether the accommodation website has done enough to protect customers from fake listings and scams.
It is the first formal probe into the Amsterdam-based company under the EU’s Digital Services Act (DSA). It was announced on Wednesday (21 October), following a year of information requests from Brussels.
The move follows mounting concern over fraud on the platform. In September, researchers at consumer champion Which? revealed they had been able to set up – and accept payment for – a fake listing for 10 Downing Street.
The Commission will examine whether Booking.com properly assessed and tackled the risk of fraudulent listings, including properties that don’t exist and impersonation of genuine hosts.
It is also looking at phishing scams, in which fraudsters exploit guests’ reservation details to pose as an accommodation provider and request payment, including through Booking.com’s own messaging service.
A third strand concerns advertising transparency. Hotels and hosts can push their listings higher in search results by paying Booking.com a higher commission. The Commission wants to know whether customers can tell that these ‘boosted’ listings are effectively adverts.
If breaches are confirmed, Booking.com could be fined up to 6% of its worldwide annual turnover.
“Europeans should be able to book their holidays without fear of being scammed,” said Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty.
Booking.com, which claims more than 28 million accommodation listings, told The Guardian it was engaging constructively with the Commission.
“Security, trust and the protection of personal information are top priorities at Booking.com,” it said. “We remain committed to working with relevant governments, regulators, law enforcement and industry partners to combat cybercrime and online fraud, and protect travellers and partners.”
