Back Finance.Biggo EU Regulators Open Probe Into Booking.com Over Fake Listings and Phishing Scams
European Union technology regulators are examining whether Booking.com does enough to remove fraudulent property listings and phishing schemes, opening a formal investigation that could expose its parent company to a penalty of up to 6% of global annual revenue.
The European Commission, which enforces the bloc's tech and competition rules, said the probe follows a preliminary review and an assessment of risk reports the hotel reservation platform filed this year and in each of the three prior years. Large online platforms are required under the Digital Services Act to take stronger action against illegal and harmful content, or face fines of as much as 6% of worldwide annual turnover.
The inquiry centers on three areas:
Investigators will also determine whether the company properly identified, evaluated and mitigated the systemic risks tied to those problems. Booking.com is a unit of Booking Holdings (BKNG).
"Europeans should be able to book their holidays without fear of being scammed," EU tech chief Henna Virkkunen said in a statement. "The Digital Services Act sets clear responsibilities on platforms to address these risks, and we must ensure that the leading booking platform in Europe takes those responsibilities seriously."
The Digital Services Act took effect for the largest platforms in 2023, obliging them to audit their own risks and submit regular compliance reports to Brussels. The Commission has used the framework to press major travel and e-commerce operators on how they police listings and advertising on their sites.
The opening of a formal proceeding does not establish wrongdoing, and the company has not publicly responded to the allegations. A finding of infringement could bring a penalty of up to 6% of Booking Holdings' global annual revenue, a sum that would run into the billions of dollars for a group of its size.
For investors, the investigation adds a regulatory overhang to a platform whose European accommodation business is central to its earnings. Beyond any fine, the case could force changes to how listings are verified, how guest data is shared with hotels and other partners, and how paid placements are labeled, all of which touch on the fees and visibility that drive the marketplace's economics.
