ECJ and the best price clause - compensation possible

Following a decision by the European Court of Justice (ECJ), hotel operators now have a good chance of asserting claims for damages against Booking.com with regard to so-called best price clauses.

According to the decision of the ECJ (judgment of 19.09.2024, ref. C-264/23), all types of best price clauses are in principle covered by the ban on cartels.

In the case of best price clauses, a distinction must be made between broad and narrow best price clauses.

As early as 2015, broad best price clauses, under which Booking.com's cooperation partners were not allowed to offer lower prices on their own website or on other travel platforms, were declared inadmissible.

Narrow best price clauses, on the other hand, were only directed against cheaper offers on the hotel's own website, while pricing on other travel platforms remained free.

The purpose behind the best price clauses was Booking.com's business model, which was based on the commission that the company received by arranging the hotel room. This commission was included in the hotel's room rate. Best price clauses were intended to prevent the hotel from being viewed on Booking.com but then being booked at a lower price on the hotel's own website.

As a result, the ECJ now denied that best price clauses are necessary for providers such as Booking.com and other platforms in order to ensure their economic stability.

The way now seems to be clear for hotel operators who have suffered economic losses as a result of the best price clauses.