EC designates Booking.com as a “gatekeeper”, investigates X

The European Commission said in March that X, TikTok owner ByteDance and Booking.com may meet European Union’s criteria subjecting them to tough tech rules as so-called gatekeepers

The European Commission (EC) said on Monday it had designated hotel reservation website Booking.com as a “gatekeeper”, which subjects it to strict EU obligations, and has opened an investigation to further determine the regulatory status of social media network X.

Online advertising services X Ads and TikTok Ads as such did not qualify as gatekeepers under the EU Digital Markets Act, the European Union added.

The European Commission said in March that X, TikTok owner ByteDance and Booking.com may meet European Union’s criteria subjecting them to tough tech rules as so-called gatekeepers.

On Monday it said Booking.com fell under the Digital Markets Act – in line with the firm’s own view – while it had opened a market investigation to further evaluate the rebuttal lodged by X, opposing the gatekeeper status.

We have been working with the EC since the beginning, in anticipation of today’s decision, a Booking.com spokesperson stated.

The spokesperson said: We are currently evaluating the designation decision and intend to continue our cooperation with the European Commission in a constructive way as we develop solutions to comply with the provisions.

ByteDance was labelled a gatekeeper in July 2023 but TikTok has challenged that at Europe’s second-highest court.

The DMA is one of the most stringent regulations targeting tech giants’ market dominance, imposing tougher obligations to moderate content, allow fair competition and make it easier for consumers to switch between services.

It designates companies with over 45 million monthly active users (MAUs) and €75 billion ($81 billion) in market cap as gatekeepers, providing a core platform service for business users.

After its designation as gatekeeper, Booking.com now has six months to submit a detailed compliance report, EC said. Nevertheless, some DMA rules are applicable with immediate effect, notably the obligation to inform the Commission of any intended concentration in the digital sector.

If a gatekeeper does not comply with the Digital Markets Act, the Commission can impose fines of up to 10% of the company’s total global turnover, which can go up to 20% in case of repeated breaches. It can also impose limits on takeover activity.