The European Commission opened a formal investigation into Booking.com over the platform's alleged failure to properly address fake accommodation listings and phishing scams , and clearly identify paid advertising.
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The investigation will examine whether the platform has properly evaluated and mitigated risks from fake accommodation listings, such as fictitious properties, fraudulent impersonation scams, and offers that do not comply with the rules applicable under the European Union's (EU) Digital Services Act (DSA), the European Commission said.
The investigation will also examine how reservation and guest data is shared with accommodation providers and how Booking.com operates its messaging service. Investigators will assess whether adequate safeguards are in place to prevent misuse of data for phishing attacks and fraudulent payment requests.
According to the statement, accommodation providers pay higher commissions to gain greater visibility in search results on Booking.com, and the European Commission will examine whether these featured accommodation listings are clearly labeled as advertisements and whether users can easily find out who placed and paid for the ad.
Under the DSA, users should be able to distinguish between accommodation listings that are prominently displayed because they are relevant to their search and accommodation listings that are promoted through paid advertising, the European Commission said.
If proven, the alleged failures would constitute a breach of the DSA's obligations regarding systemic risk evaluation, risk mitigation and advertising transparency.
The European Commission said it would prioritize in-depth investigations and gather further evidence through information requests, interviews, or inspections. It could also impose interim measures or seek commitments from Booking.com to address the issues.
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