The Spanish antitrust authority announced on Tuesday that it has imposed a €413.2 million fine on the online travel booking company Booking.com.

The fine was imposed on the company for abusing its dominant market position from 2019 to the present.

According to the authority, the company imposes unfair terms of cooperation on Spanish hotels that receive bookings through its platform.

The regulatory authority, CNMC, stated in a press release that it had levied two fines totaling €206.6 million on Booking.com, a subsidiary of the New York-listed Booking Holdings. The fines were due to the company's exploitation of its market share (ranging from 70% to 90%) to impose unfair terms on hotels and restrict competition from other online booking service providers.

Booking Holdings did not immediately respond to Reuters' request for comment.

The proceedings arose from two complaints filed by the Spanish Association of Hotel Managers and the Association of Hotel Businesses of Madrid in 2021.

The CNMC noted that the booking website prohibits hotels from offering lower prices on their own websites compared to those offered on Booking.com. Additionally, it unilaterally imposes discounts on hotel room rates without consulting the hoteliers.

Booking.com also requires Spanish hotels to litigate in the Netherlands rather than in Spain in the event of conflicts of interest, the CNMC reported.

To maintain its high market share, Booking.com favors hotels that provide it with higher commissions, thereby limiting the ability of alternative service providers to persuade hotels to cooperate with them.

The online booking service can appeal the fine to the Spanish Supreme Court.