EU Commission names Booking gatekeeper under Digital Markets Act, investigates X

6 months ago 27

The European Commission announced on Monday (13 May) the designation of Booking, the parent company of online travel giant Booking.com, as a gatekeeper under the Digital Markets Act (DMA) and initiated a market investigation of social media platform X.

While the Commission decided not to designate X Ads and TikTok Ads as gatekeepers, it launched an investigation into Elon Musk’s X, formerly Twitter, over its potential designation as a gateway.

The landmark DMA targets digital competition by designating large platforms as gatekeepers, serving as vital gateways between business users and consumers that can create bottlenecks in the digital economy. These gatekeepers must ensure fair competition and equal access to services.

Following Booking’s designation, “holidaymakers will start benefiting from more choice and hotels will have more business opportunities,” said Margrethe Vestager, the Commission’s executive vice-president in charge of competition policy.

A Booking spokesperson told Euractiv on Monday the company had been working with the Commission “for some time” and “anticipated today’s [designation] decision,” which it is currently reviewing.

An automated response from X’s press email said “Busy now, please check back later.”

Booking

Booking’s self-assessment, submitted on 1 March, emphasises its position as an intermediary between businesses and consumers, particularly through its ownership of the Booking.com platform, the Commission said. The company’s intermediary role makes it a gatekeeper under the DMA.

Booking.com is the online travel agency platform, while Booking refers to the parent company, Booking Holdings Inc., which owns the platform and other brands.

Following the designation, Booking must comply with the regulation within six months. The company will have to submit a detailed compliance report within the stipulated timeframe, outlining DMA compliance.

Certain DMA obligations must be enforced immediately, such as reporting digital sector “intended concentrations” to the Commission, the Commission’s statement said.

The Commission can levy fines of up to 20% of the company’s global turnover for repeated violations. Additional measures may be imposed for systematic non-compliance

Before Booking, the latest addition to the DMA’s gatekeeper list was Apple’s iPadOS tablet operating system in late April.

Last September, the Commission blocked Booking.com’s merger with technology company eTraveli, under EU merger rules.

The cases of Ads

The Commission’s investigation into X was prompted by a rebuttal submitted by the company on 1 March, regarding the social media platform’s classification as a gatekeeper. This inquiry is expected to conclude within five months.

The rebuttal contends that, despite meeting certain thresholds, X does not fulfil all the criteria.

Another two rebuttals were lodged concerning the online advertising services of X and Bytedance’s TikTok. The Commission determined that while X Ads and TikTok Ads satisfy the quantitative designation thresholds outlined in the DMA, they do not function as gatekeepers.