The European Commission has launched a formal investigation into online travel platform Booking.com over concerns that it may not be doing enough to protect customers from fraudulent hotel listings, phishing scams and misleading advertisements.
The investigation, announced on October 21, will examine whether the company has violated the European Union’s Digital Services Act (DSA) by failing to adequately identify and address risks associated with online fraud.
According to the European Commission, the investigation will focus on three major areas, including fake accommodation listings, phishing scams involving customer reservation details and paid hotel listings appearing higher in search results without being clearly identified as advertisements.
Regulators will examine whether scammers are exploiting Booking.com’s messaging system and customer information to impersonate accommodation providers and request fraudulent payments.
The Commission will also investigate whether hotels paying higher commissions to improve their search rankings are being properly identified as sponsored listings.
“Europeans should be able to book their holidays without fear of being scammed,” EU technology chief Henna Virkkunen said.
She added that the Digital Services Act places clear responsibilities on online platforms to address such risks.
Booking.com said it was cooperating with the investigation and stressed that security, trust and the protection of personal information remain among its top priorities.
Under EU regulations, companies found violating the Digital Services Act can face fines of up to 6% of their global annual turnover.
The Commission said the investigation would be treated as a priority. However, the opening of formal proceedings does not mean the company has been found guilty of any wrongdoing. (Newswire)