Swiss authorities have ordered Booking.com to significantly reduce the commission fees it charges hotels for reservations made through its platform. The Swiss price regulator concluded that Booking.com had leveraged its dominant market position to impose excessively high charges on accommodation providers.
The mandated cut of nearly 25% aims to bolster the competitive standing of Swiss hotels in the global hospitality market. The regulator also noted that the move could provide indirect financial relief to consumers.
Booking.com disputes the regulator’s findings and plans to appeal the decision. The company argues that hotels are under no obligation to list their rooms on the platform and contends that its service offers valuable exposure and booking potential to its partners.
Booking.com has stated that it will maintain its current commission structure while the legal process unfolds. However, if the ruling is upheld, the commission rate reduction must be put into effect within three months of the final judgment and will remain valid for a period of three years.
