EXPLAINER: Why Spanish hotels could be set to sue Booking.com for a cool €1 billion
SPANISH hotels are gearing up for what could be one of the country’s biggest legal battles against a multinational corporation – and it’s all about controversial pricing rules that may have cost them billions.
Here’s everything you need to know about the looming €1 billion lawsuit against Booking.com that’s got the Spanish hospitality industry buzzing.
What’s this all about?
For two decades, Booking.com has forced Spanish hotels to sign contracts containing ‘parity clauses’ – essentially rules that prevented hotels from offering cheaper rates anywhere else, including on their own websites.
These clauses meant that if a hotel wanted to offer a discount or special rate, Booking.com always had to get the same deal – or better. It severely limited how hotels could price their rooms and negotiate with other booking platforms.
Why is this suddenly a big deal?
Last September, the European Court of Justice ruled that these parity clauses could breach competition laws, finding they weren’t necessary or proportionate. This landmark ruling has opened the floodgates for hotels to seek compensation.
Spain’s competition watchdog CNMC had already slapped Booking.com with a record €413 million fine for abusing its dominant market position – the biggest penalty in the authority’s history.
How much money are we talking about?
Legal firm Eskariam, which is spearheading the collective lawsuit, estimates Andalucian hotels alone could claim around €1 billion. Nationwide, the figure could exceed €4 billion.
Their analysis suggests hotels suffered damage worth between 1.65% and 2.12% of their annual revenues during the years these clauses were active.
To put that in perspective: a hotel earning €5 million annually that worked with Booking for 10 years could potentially claim around €750,000 plus interest – pushing their total compensation above €1 million.
How does the legal process work?
Eskariam operates on a ‘no win, no fee’ basis, covering all legal costs upfront and only taking a 25-30% commission if the case succeeds. Hotels have five years to join the action, with the first collective lawsuit planned for early 2026.
Over 500 establishments are expected to participate, with the adhesion period running through the remainder of this year.
What does Booking.com say?
The accommodation giant disputes the claims, insisting the EU ruling doesn’t conclude their clauses were anti-competitive and arguing it ‘doesn’t open the door to damage claims.’
They’ve vowed to fight the case in court.
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