NIHF join collective action against Booking.com

The Northern Ireland Hotels Federation (NIHF) is supporting a landmark pan-European collective action against Booking.com.

This action follows the judgment by the European Court of Justice (ECJ) on 19 September 2024, which found that the platform’s parity clauses breached EU competition law. The initiative is also actively supported by HOTREC, the European hospitality association, and over 25 national hotel associations across Europe.

In 2021, Booking.com unilaterally terminated corresponding compensation negotiations with the German Hotel Association (IHA) and started legal proceedings against several hundred German hotels before the Amsterdam District Court. An interim result of this (pending) process is the ruling of the European Court of Justice from 19 September 2024, which confirmed findings of the German Federal Cartel Office that the platform’s parity clauses breached EU competition law. This has resulted in claims for damages for hotels throughout Europe, which are now to be asserted with the class action supported by HOTREC.

Over the past 20 years, these parity clauses placed Northern Ireland hotels at a significant competitive disadvantage. They suppressed price competition between Booking.com and other online platforms, leading to inflated commissions paid by hotels. In addition, the clauses restricted hotels from offering better prices or availability on their own websites, limiting direct sales and autonomy.

In short, Booking.com’s use of anti-competitive parity clauses caused substantial financial harm to hotel businesses across Northern Ireland.

Under the general principles of European competition law, hotels in NI are entitled to claim compensation from Booking.com for the financial losses suffered. Affected hotels may be eligible to recover a significant portion of commissions paid to Booking.com in any period from 2004 to 2024, plus interest.

“This is a chance for hoteliers to stand up for their rights, recover financial losses, and promote a fairer online marketplace,” said Janice Gault, Chief Executive of the Northern Ireland Hotels Federation (NIHF).

“This legal action is unprecedented, and the Federation is supporting it on behalf of its members to secure full compensation for hotels affected by Booking.com’s anti-competitive practices. For over twenty years, the platform’s parity clauses have posed serious challenges for the local hotel sector, leading to significant financial harm through inflated commission fees. This is not only about exposing unfair business conduct but also about seeking meaningful financial redress.”

The NIHF is actively working with affected hotels, guest accommodation providers and guesthouses across Northern Ireland to guide them through the next steps in joining the collective legal action against Booking.com.

The case will be led and handled by a team of highly experienced and recognised competition lawyers, litigators, and competition economists, who have already successfully achieved the ECJ’s judgment of 19 September 2024.

The deadline for participation is 31 July 2025.