Swiss regulator orders Booking.com to lower commission rates for hotels

A regulatory body in Switzerland has ordered Booking.com to lower the commissions for hotel reservations by almost 25 percent. The demand came after an investigation by the pricing watchdog. The investigation proved that the hotel and travel booking platform abused its position of power by demanding “abusively high” commission rates.

Booking.com charges commissions to hotels that receive reservations through the platform. According to the Swiss regulator for fair pricing, the order is meant "to strengthen the competitive position of Swiss hotels in a difficult global market and indirectly reduce the financial burden for customers.”

Amsterdam-based Booking.com does not agree with the forced reduction. According to the company, the hotels are not obligated to offer their rooms on the platform.

The company is set to appeal the decision. In the meantime, it plans to continue with the current commission rate while the appeal process is ongoing.

The regulator ordered that the price reduction must be implemented with a deadline of three months after the ruling is finalized. The decision is to remain in effect for three years.

This came after the regulator’s unsuccessful attempt to negotiate a solution for the issues with Booking.com.