The European Court of Justice has ruled that Booking.com's restrictions on hotels offering lower rates on their own and rival websites are unnecessary and may harm competition. However, the court clarified that these parity clauses are not considered anti-competitive under EU law. These clauses have faced scrutiny from regulators and complaints from competitors, with Germany's antitrust authority banning them outright. The ruling aligns with the Digital Markets Act, which prohibits large online platforms from using such restrictions. The court emphasized that there is no evidence to justify the existence of these clauses, stating they could reduce competition and disadvantage smaller booking platforms. This case arose after Booking.com sought clarification on the validity of these practices following regulatory scrutiny.