Booking.com abuse of dominance
Ruling
Ruling No. АД/115711-ДСП/20 on the case No. 11/01/10-41/2019 dated December 29, 2020 [1]
Parties
Complainant –All-Russian Non-Governmental Organization of Small and Medium Business "OPORA RUSSIA"
Defendant – Booking.com B.V.
Jurisdiction
Federal Antimonopoly Service
Type
Abuse of dominance
Fine
1.3 billion RUB
Remedies
Remedies No. АД/115763/20 on the case No. 11/01/10-41/2019 dated December 29, 2020 [2]
Infringement decision
In December 2020, FAS completed antitrust investigations in relation to accommodation (hotels, hostels, etc.) aggregator Booking.com B.V., following a complaint by an NGO that defends the rights of small and medium-sized enterprises (OPORA RUSSIA). [3]
The authority determined that Booking.com abused its dominant position in the Russian market for the provision of services by aggregators of information about accommodation facilities and imposed a record fine in the amount of 1.3 billion RUB. [4]
Booking.com imposed on accommodation facilities broad and narrow parity clauses in terms of both prices and terms of provision of services. This meant that they could not offer better deals on their own websites, competing platforms and other sales channels than on Booking.com. FAS decided that this practice restricts competition and harms the interests of accommodation facilities.[5]
FAS started infringement proceedings after Booking.com ignored its warnings sent in November 2019[6] and September 2020 [7] requesting to remove the clauses.
Courts’ decisions
In August 2021, Booking.com appealed the requests to remove the clauses and the infringement decision to Moscow Arbitration Court but the court upheld the FAS’s ruling and remedies.
Booking.com appealed decision of the Moscow Arbitration Court to Ninth Arbitration Court of Appeal but in November 2021 the court rejected the complaint and upheld the decision of the court of first instance.[8]
Compliance with the remedies
In December 2021, Booking.com complied with the imposed remedies and terminated application of parity clauses in the Russian Federation.[9]
[1] Ruling No. АД/115711-ДСП/20 on the case No. 11/01/10-41/2019 dated December 29, 2020, available at: https://br.fas.gov.ru/ca/upravlenie-regulirovaniya-svyazi-i-informatsionnyh-tehnologiy/cdf15018-ef29-40e8-acbd-d39edc8aee39/?query.
[2] Remedies No. АД/115763/20 on the case No. 11/01/10-41/2019 dated December 29, 2020, available at: https://br.fas.gov.ru/ca/upravlenie-regulirovaniya-svyazi-i-informatsionnyh-tehnologiy/84e7607f-8d6d-4d98-b479-bb2741d632cc/?query.
[3] See "FAS Russia recognized the company Booking.com violated the antimonopoly legislation", available at: http://en.fas.gov.ru/press-center/news/detail.html?id=55116.
[4] See "FAS Russia fined Booking.com B.V. by 1.3 billion RUB", available at: http://en.fas.gov.ru/press-center/news/detail.html?id=55261.
[5] Ibid.
[6] See "FAS requested Booking.com to exclude parity", available at: http://en.fas.gov.ru/press-center/news/detail.html?id=54555.
[7] See "FAS Russia issues second warning to Booking.com", available at: http://en.fas.gov.ru/press-center/news/detail.html?id=55006.
[8] See ‘The Court rejected the Booking.com’s appeal in the antimonopoly case’, available at: http://en.fas.gov.ru/press-center/news/detail.html?id=55324.
[9] See ‘Booking.com complied with the remedies imposed by FAS to cease the parity clauses’, available at: http://en.fas.gov.ru/press-center/news/detail.html?id=55325.