Over 10,000 European hotels have now joined a class action lawsuit against the online platform Booking.com, as hotel owners across the continent unite to seek compensation after being barred for years from offering lower prices on their own websites.
The Association of Hotels, Restaurants, and Cafés in Europe (HOTREC), which represents the sector at the EU level, stated that hotel owners are pursuing repayment for losses suffered between 2004 and 2024 due to the so-called “best-price” clauses. Booking.com implemented the clauses to combat what is referred to as “free-rider” bookings – cases where a customer would find a hotel through the platform but then make the reservation directly with the hotel, bypassing the online company.
In September 2024, however, the European Court of Justice found this practice illegal, stating that the platform can function well without the limitation. In reaction to the pressure from the new European Digital Markets Act, Booking.com has dropped the practice.
“European hoteliers have long suffered from unfair terms and excessive costs. Now is the time to stand together and demand compensation,” said Alexandros Vassilikos, president of HOTREC. “This joint initiative sends a clear message: abusive practices in the digital market will not be tolerated by the hospitality industry in Europe.”
In 2018, Belgium implemented a law banning these clauses, aligning itself with several other European countries that had already taken similar steps. Nevertheless, Horeca Vlaanderen, the Flemish trade association for the hospitality industry, is now participating in the group action to seek compensation for losses incurred prior to 2018.
Several hotels in Estonia have also expressed interest in joining the lawsuit against Booking.com. Külli Kraner, CEO of Estonia’s national hotel and restaurant association, told “Vikerhommik” that although Booking.com continues to be a key partner for hotels and accommodations in Estonia, the market-distorting practices it enforces need to end.
HOTEC reported that the deadline to join the lawsuit against Booking.com has been extended until 29 August. “The class action is receiving overwhelming support,” noted IHA Managing Director Markus Luthe.
Booking.com stated that it has not received any formal lawsuit. “This is a declaration from HOTREC, not an actual class action filing,” the company responded when asked for comment. The platform also dismissed the accusations made by hotel associations and rejected the legal arguments referencing the European Court of Justice ruling.
“Our accommodation partners are entirely free to determine their own pricing and distribution strategies and may list their rooms on any platform they choose,” Booking.com stated.
Some hotel associations in 🇪🇺, including HOTREC, have recently made allegations about some of our business practices.
— Booking.com Public Affairs (@bookingcomPA) July 11, 2025
We create value for our hotel partners every day and remain committed to fair competition.
Here's why we disagree with these claims ⤵️https://t.co/1Py687LX6G
The case marks an important challenge for the EU’s changing strategy in regulating digital platforms and their dealings with business partners. A victory in this lawsuit could inspire similar legal actions targeting other platform-based business models that enforce restrictive conditions on their partners.
