EU opens Booking.com investigation over fraud risks and advertising transparency

Brussels, Belgium. The European Commission announced on Wednesday that it had begun formal proceedings against Booking.com over possible breaches of EU digital rules involving fraudulent accommodation listings, phishing and the identification of paid search placements as advertising.

Compliance with digital rules

The Commission said its investigation would examine Booking.com’s compliance with the Digital Services Act (DSA). The legislation obliges large online platforms to assess and reduce systemic risks, while making advertising transparent.

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Paid placements in search results

According to the Commission, accommodation providers can secure a higher position in Booking.com searches by paying increased commissions. It said users must be able to distinguish these promoted placements clearly as advertisements.

Investigators will assess whether users can easily establish whose advertisement they are seeing, who financed it and why it was displayed to them. The inquiry will also examine whether users can identify how to adjust the settings that determine the advertisements they receive.

Phishing and customer information

The Commission said another part of the inquiry would focus on phishing schemes that exploit information about guests and their reservations.

It will examine whether Booking.com sufficiently evaluated and dealt with these risks, including those linked to the way information is passed to accommodation providers and to the design and operation of its messaging service.

Investigators will also consider whether adequate protections prevent that information from being exploited for phishing or requests for fraudulent customer payments.

Fraudulent and non-compliant accommodation offers

The Commission said it would investigate whether Booking.com sufficiently identified and evaluated risks involving illegal content. These include listings for properties that do not exist, fraud involving impersonation and accommodation offers that fail to meet relevant requirements.

It will also examine whether the company adopted effective responses, including taking down fraudulent listings and offers that breach requirements, which the Commission said can weaken consumer protection.