Swiss Watchdog Orders Booking Commissions Cut 25% for Three Years

Switzerland's price watchdog has ordered Booking.com to reduce its commission rates for Swiss hotels by approximately 25%, citing abusively high fees and a lack of effective competition in the market. The ruling aims to enhance the competitiveness of Swiss hotels and alleviate financial burdens on customers, with the reduction to take effect three months after the decision becomes legally binding and remain in place for three years. Booking.com has rejected the forced reduction, arguing that its platform usage is voluntary for hotels and pledging to appeal the decision, meaning current commission rates will stay unchanged during legal proceedings. This move reflects growing regulatory scrutiny of large online travel agencies and tech platforms globally, addressing concerns that their pricing practices may hinder fair competition and impact local businesses. The Swiss case could potentially influence similar regulatory actions in other countries, signaling a shift toward increased oversight of dominant digital market players' pricing strategies. The ruling follows broader European efforts to regulate online rental and booking platforms, as seen in recent Spanish government actions against Airbnb.