The Cyprus Hotel Association (PASYXE) has joined over 25 national hotel associations across Europe in a collective legal action against Booking.com, accusing the platform of violating EU competition law through the use of restrictive price parity clauses.

The legal campaign follows a significant ruling by the Court of Justice of the European Union in September 2024, which found that Booking.com's so-called "most favoured nation" clauses — which prevented hotels from offering lower prices on their own websites or through other channels — breach EU competition rules. These clauses had long been criticised by hoteliers for limiting their ability to compete on pricing and maintain control over their own distribution strategies.

The lawsuit, coordinated by the Stichting Hotel Claims Alliance, will be filed in Dutch courts and aims to provide a unified and effective legal path for seeking compensation at the European level. Associations representing hotel businesses from countries including Cyprus, Germany, France, Italy, Greece, the Netherlands, and many others are participating.

Cypriot hoteliers, like many of their European counterparts, argue that Booking.com has abused its dominant market position by enforcing these parity clauses, even after the EU ruling. While Booking.com officially ceased the practice, hotel associations claim the platform continues to exert pressure on hotels that try to offer better rates elsewhere.

The dispute centres around the 15% commission typically charged by Booking.com — often higher in practice — which hoteliers say leaves room for more competitive pricing if they could offer direct discounts to customers. However, until recently, the platform's terms prohibited hotels from undercutting its listed rates.

Thanks to the growing digital transformation in the hospitality sector, many hotels in Cyprus and beyond now operate their own booking engines. This has made direct sales more feasible, especially for independent or boutique establishments, yet the lingering dominance of Booking.com continues to pose barriers to full pricing freedom.

For its part, Booking Holdings has publicly stated its compliance with the EU's Digital Markets Act (DMA), under which it has been officially designated as a "gatekeeper" platform by the European Commission. On its website, the company claims to be committed to promoting a fair and competitive digital economy and says it has implemented measures to align with DMA obligations.

Still, the collective legal action argues otherwise — with plaintiffs maintaining that compliance has been inconsistent and that substantial harm has already been done to the hospitality sector across Europe.