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Times of Oman

Over 10,000 hotels join complaint against Booking.com

Brussels: European hotel owners are joining together in a class action suit against the online platform with more than 10,000 hotels have now signed on to the damages suit. According to the Association of Hotels, Restaurants and Cafes in Europe HOTREC, which represents the industry within the EU, hotel owners will seek compensation for losses incurred between 2004 and 2024 as a result of so-called "best-price" clauses that keep hotels from offering rooms for less on their own sites. The initiative is also backed by 30 national hotel associations, including the German Hotel Association (IHA). Netherlands-based used the clauses as a way to prevent what it called "free-rider" bookings, which it defined as a customer discovering a hotel on but then booking directly with the hotel and not the online giant. These clauses had required hotels not to offer rooms at lower prices on other platforms, including their own websites. What is the basis of the claims? A suit to be brought before an Amsterdam court by the Hotel Claims Alliance — and supported by HOTREC and 30 more hotel associations — cites a September 19, 2024 European Court of Justice (ECJ) verdict finding best-price clauses illegal. The ECJ ruled that online platforms could operate without putting such restrictions on partner hotels. did away with the clause in 2024 as a result of the European Union Digital Markets Act. "European hoteliers have long suffered from unfair conditions and excessive costs," according to HOTREC President Alexandros Vassilikos. "This joint initiative sends a clear message: abusive practices in the digital market will not be tolerated by the hospitality industry in Europe." HOTREC on Monday announced an extension of the time limit to join the suit against until August 29. "The class action is receiving overwhelming support," IHA Managing Director Markus Luthe told Germany's DPA news agency. What has said? said has not received an official lawsuit, according to reporting by DPA. "This is a statement from HOTREC, not a filed class action," the company said in response to an inquiry. It also rejected the claims by the hotel associations, and the legal arguments based on the ECJ ruling.