Italy’s competition watchdog has launched a formal investigation into Booking.com. It alleges that the platform’s partner ranking programmes may be misleading consumers and pushing them towards pricier accommodation without their knowledge.
The Italian Antitrust Authority (AGCM) announced Wednesday that it has opened a probe into the travel giant over alleged unfair commercial practices linked to its “Preferred Partner” and “Preferred Plus” programmes.
What is the Preferred Partner programme?
According to the Authority, Booking.com uses the Preferred Partner scheme to grant certain accommodation providers enhanced visibility in search results. They also provide greater graphical prominence on the platform, and quality and value-for-money labels that suggest superior offerings.
The problem, the regulator argues, is that the criteria for inclusion in these programmes have little to do with actual quality. Instead, the AGCM contends that selection appears to be driven primarily by the level of commission an accommodation provider pays to Booking.com. It is not by the standard of the rooms, the service, or the guest experience.
“The way those providers are presented, together with claims by Booking.com highlighting their quality, may mislead consumers into believing that, all else being equal, they offer better overall value for money than providers not in the programme,” the Authority stated. It added that this dynamic could lead users to book accommodation that is, on average, more expensive.
On Tuesday, officials from the AGCM and officers from the Guardia di Finanza (finance police) carried out inspections at the offices of Booking.com (Italia) S.r.l.
Consumer groups welcome investigation
Consumers’ association Codacons welcomed the investigation. They say the alleged practices as a form of active deception with real financial consequences for Italian travellers.
“People who use hotel booking platforms like Booking.com have the right to maximum transparency,” Codacons said, “because the results and information offered by these sites can influence consumers’ financial decisions.”
The association argued that presenting accommodation as superior on the basis of commission payments amounted to misleading users into spending more money than necessary. Users are acting under the mistaken belief they were securing the best deal.
Codacons also underscored the scale of the issue. According to the group, 70% of hotel bookings in Italy are now made through specialist websites. Booking.com alone accounts for 42% of all digital hotel bookings in the country.
Booking.com responds
The company confirmed it is cooperating with the investigation. However, it defended its partner programmes, describing them as optional for accommodation providers. The company said it believes the programmes comply with consumer protection legislation and strike an appropriate balance between the interests of its accommodation partners and the ability of users to benefit from a wide range of choices.
The investigation is the latest sign of increasing regulatory pressure on major digital platforms operating in Italy and across the EU. Authorities are scrutinising whether algorithmic ranking systems prioritise commercial relationships over genuine user benefit.
In 2023, the platform paid Italy €94million in unpaid taxes.
