The EU has already appointed six market “gatekeepers” who must comply with the DMA
The European Union on Monday added Dutch online travel giant Booking.com to its list of digital companies that are big enough to fall under stricter competition rules.
Brussels also said it would investigate whether social media platform X, owned by tech billionaire Elon Musk, could be exempt from the rules.
The former Twitter submitted a rebuttal arguing that “despite meeting the thresholds, X does not qualify as an important gateway between businesses and consumers,” said the European Commission, whose investigation is expected to be completed within five months.
Booking.com, whose parent company Booking Holdings is based in the United States, now has six months to prepare for compliance with the landmark Digital Markets Act (DMA).
The EU has already named six market “gatekeepers” that must comply with the DMA: Alphabet, Google’s parent company, Amazon, Apple, Meta, Microsoft and ByteDance, owner of TikTok.
The rules aim to create a level playing field in the digital market, ensuring that EU users have more options when choosing products such as web browsers and search engines.
The DMA also requires companies to inform Brussels before acquiring other companies, regardless of size, in an attempt to curb monopolies.
Booking.com is a dominant player, with a European market share of over 60%.
“The good news today is: tourists will start to benefit from more options and hotels will have more business opportunities,” said EU Competition Commissioner Margrethe Vestager.
Internal Market Commissioner Thierry Breton promised that the EU would work to ensure that Booking “will fully comply with its DMA obligations within six months”.
– Companies in the crosshairs –
Booking.com said it was in talks with the commission before the EU decision.
“(We) will continue to work constructively with them as we develop solutions to comply,” the company added in a statement.
With the DMA, the EU can impose fines of up to 10% of a company’s total global turnover. This amount can increase to 20% in the case of repeat offenders and, in the most serious circumstances, the EU can order the dissolution of companies.
The EU has not shied away from taking on the biggest digital platforms, such as Booking, through its new laws or the use of older, more established rules.
Brussels last year blocked Booking’s bid for eTraveli, a smaller online travel agency, citing fears it could lead to higher prices for consumers.
The EU has already launched investigations under the DMA into Apple, Google and Meta.
For Brussels to appoint a company as guardian, it must meet certain conditions.
The criteria include having more than 45 million monthly active users in the EU and more than 10,000 annual active business users established in the bloc.
Digital companies with an annual EU turnover of at least €7.5 billion ($8.1 billion) or a market value of more than €75 billion also face the new restrictions.
In the same statement on Monday, the commission also stated that it chose not to include advertising services provided by X and TikTok in its list.
(Except the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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