6 hours ago
- Business
- Belfast Telegraph
NI hotels join compensation action against Booking.com's ‘anti-competitive' practices
The action — involving more than 25 European countries and which could cost millions of euros — follows the judgment by the European Court of Justice (ECJ) on September 19 last year, which found that the platform's parity clauses breached EU competition law.
However, has previously said it is unaware of any pending legal action and suggested the case appeared to be based on 'incorrect and misleading' information.
'This is a chance for hoteliers to stand up for their rights, recover financial losses, and promote a fairer online marketplace,' said Janice Gault, Chief Executive of the Northern Ireland Hotels Federation (NIHF).
'This legal action is unprecedented, and the Federation is supporting it on behalf of its members to secure full compensation for hotels affected by anti-competitive practices.
'For over 20 years, the platform's parity clauses have posed serious challenges for the local hotel sector, leading to significant financial harm through inflated commission fees.
'This is not only about exposing unfair business conduct but also about seeking meaningful financial redress.'
In 2021, unilaterally terminated corresponding compensation negotiations with the German Hotel Association (IHA) and started legal proceedings against several hundred German hotels before the Amsterdam District Court.
An interim result of this (pending) process is the ruling of the European Court of Justice from September 19 2024, which confirmed findings of the German Federal Cartel Office that the platform's parity clauses breached EU competition law.
This has resulted in claims for damages for hotels throughout Europe, which are now to be asserted with the class action supported by HOTREC, an umbrella group representing hotels, restaurants and cafes in Europe.
The federation said that over the past 20 years, these parity clauses placed Northern Ireland hotels at a significant competitive disadvantage and that they suppressed price competition between and other online platforms, leading to inflated commissions paid by hotels.
In addition, the clauses restricted hotels from offering better prices or availability on their own websites, limiting direct sales and autonomy.
The federation added that use of anti-competitive parity clauses caused 'substantial financial harm to hotel businesses across Northern Ireland'.
Under the general principles of European competition law, hotels in Northern Ireland are entitled to claim compensation from for the financial losses suffered. Affected hotels may also be eligible to recover a significant portion of commissions paid to in any period from 2004 to 2024, plus interest.
The NIHF said they are actively working with affected hotels, guest accommodation providers and guesthouses across Northern Ireland to guide them through the next steps in joining the collective legal action against
The case will be led and handled by a team of competition lawyers, litigators, and competition economists, who have already successfully achieved the ECJ's judgment last September.
The legal claim will be brought before the courts in the Netherlands, with hotels having until July 31 to sign up to the damages litigation.
The Irish Hotels Federation is one of dozens around Europe involved in the action. In a statement to RTÉ News last week, said it is 'not aware of any European wide legal action being taken by hotels'.
It added that: 'The ECJ judgment relates specifically to questions asked by the Amsterdam District Court in relation to litigation between and some German hotels disputing the legality of price parity clauses in Germany between 2006 and 2016 — the court did not conclude that German parity price clauses were anti-competitive or had an effect on competition. The Amsterdam Court will now need to make a decision specifically on German parity clauses only.'
