Follow legal obligations to ensure fairness in competition. From July 1, they have decided to remove parity clauses in the European Economic Area, based on the requirements of this law. Parity clauses have been seen as unfair by hotel associations, as they restricted hotels from offering more competitive prices on their own websites.
The Digital Markets Law aims to regulate large tech companies to promote fair competition. Introduced in July 2023, it has since designated six tech companies, including and most recently, Booking.com, as “gatekeepers.” This means such companies have to meet certain legal obligations to reinforce competition.
This new action by Booking.com to eliminate parity clauses is a direct response to this law. The move is expected to restore balance in the market and allow hotels to compete more effectively by offering lower prices on their own sites. The decision is widely welcomed by hotel associations, who had used the term “abusive” to describe these clauses. This regulatory decision is in line with the efforts of the Digital Markets Law to ensure a fairer and more competitive business environment.