Brussels: The European Commission has launched a formal investigation into Booking.com to determine whether the online travel booking platform is adequately protecting users from fraudulent accommodation listings, phishing attacks and potentially misleading advertisements.
Announced on Wednesday, the probe follows a preliminary assessment of the platform and an examination of risk assessment reports submitted by the company this year and over the previous three years.
The investigation will examine whether Booking.com has effectively identified and addressed risks associated with deceptive content on its platform. These include listings for properties that do not exist, impersonation fraud and accommodation offers that fail to comply with applicable requirements.
Regulators will also scrutinise phishing scams involving reservation and guest information shared by the platform with accommodation providers. Such information could be exploited by fraudsters to target travellers with deceptive messages and trick them into revealing sensitive details or making fraudulent payments.
Another focus of the investigation is paid, promoted listings that may not be clearly labelled as advertisements. The Commission will assess whether Booking.com is meeting transparency requirements concerning these listings.
The probe has been initiated under the European Union’s Digital Services Act (DSA), which requires major online platforms to assess and mitigate systemic risks associated with their services. Companies found violating the regulation can face fines of up to 6% of their worldwide annual turnover.
EU tech chief Henna Virkkunen said Europeans should be able to book holidays without worrying about falling victim to scams. She emphasised that the DSA establishes clear obligations for online platforms and said authorities must ensure that leading booking services take these responsibilities seriously.
Booking.com operates under Booking Holdings, which is listed on the Nasdaq under the ticker BKNG.
The investigation will assess the platform’s compliance with EU rules. The launch of the probe does not establish that the company has violated the law; regulators will examine the evidence before determining whether further action is necessary.
