European Commission investigates Booking for suspicion of fraud and fraud

A European Commission today opened formal proceedings against the Booking tourist accommodation reservation platform. to investigate any failures in the fight against fraudulent ads and scams through false messages, it was announced.

“The European Commission has today opened a formal procedure to assess whether Booking. as may have violated the Digital Services Regulation, for not having diligently evaluated or effectively mitigated the risks associated with fraudulent ads and ‘phishing’ schemes [computer fraud]”, announces the institution in a statement.

According to Brussels, “the platform may also have violated the transparency rules provided for in the Digital Services Regulation, because it does not clearly identify as advertising the advertisements whose suppliers paid a higher commission to obtain a more prominent position in the search results presented to users.”.

Community research now under way covers advertisements for non-existent accommodation, identity theft fraud and accommodation offers that do not comply with the rules, practices that may harm consumers.

Brussels will also examine the risks associated with scams that exploit booking and guest data, in particular how this information is shared with accommodation and the functioning of the platform message service.

The European Commission also intends to verify that Booking is involved. with clearly identifies as advertising accommodation that obtains greater visibility in research results by paying higher fees.

According to the Community executive, users should be able to identify who is behind each announcement, who paid for its disclosure and why it is presented to them.

If the suspicions are confirmed, the company may have violated the provisions of the Digital Services Regulation on systemic risk assessment and reduction and transparency of advertising.

The institution will continue to collect evidence and may send further requests for information, conduct interviews and carry out inspections.

The Community executive may adopt provisional measures, issue a decision on non-compliance or accept undertakings proposed by the company to correct the identified failures.

The Booking. with, a digital platform for accommodation reservations and other travel services, was designated by the European Commission as a very large online platform in April 2023, subject to enhanced obligations under the Digital Services Regulation.

Like Booking. As it is based in the Netherlands, Brussels is cooperating with the Dutch Consumer and Market Authority, responsible for coordinating digital services in the country.

This European legislation aims to make digital services safer and enhance user protection by imposing on large platforms specific obligations to identify, assess and reduce the risks associated with their services, including those related to illegal content and consumer protection.