The Hungarian Competition Authority Has Imposed the Highest Ever Fine on Booking.com in a Follow-up Investigation

In 2018, the Hungarian Competition Authority (HCA) launched a competition investigation against Booking.com B.V. for engaging in unfair commercial practices. As a result of these proceedings in 2020, a fine of HUF 2.5 billion (approx. EUR 6.5 million) was imposed by the HCA. Furthermore, the HCA prohibited the company from continuing the unfair commercial practice.  

The subjects of the first investigation mentioned above were:

• Booking.com advertised free cancellation in its advertisements but this option was limited in time for several accommodation facilities. In addition, consumers had to pay a higher price for the same accommodation if they chose an accommodation with free cancellation option instead of the no cancellation option.

• The proceedings were also based on the fact, that the company exerted psychological pressure on consumers by using urging texts, e.g. that the accommodation was very popular and had limited availability.

• The third problem was the lack of professional care in the presentation of the payment options for the "szép-card" (a payment instrument in lieu of cash, which can be used for the purchase of products and services related to holidays).

In 2022, the HCA commenced a follow-up investigation aimed at verifying the compliance of Booking.com B.V. with the above decision of the HCA.

The company has reduced, but still not eliminated the commercial practices in question. For example, it continued to exert psychological pressure by sending urgent notices and continued to advertise free cancellations, while at the same time it removed the option which was available at a cheaper price but did not offer free cancellations. It was only in the final stage of the proceeding that the company fully stopped the above-mentioned commercial practice. 

In its recent decision adopted in the follow-up investigation the HCA has taken into consideration that the company had waived its right of appeal, but did not admit its infringing behaviour and only complied with the first decision at the final stage of the follow-up proceeding. The HCA eventually decided to impose a fine of HUF 382.5 million (approx. EUR 1 million).

The HCA set a deterrent example by imposing such fine and signified that there could be serious consequences for not complying with the decisions of the HCA and continuing to mislead consumers.