Business

5/14/2024, 12:00 PM

Booking: Stricter EU Regulations Change the Market

EU classifies Booking.com as a gatekeeper – US company must adhere to stricter regulations.

The US Company Booking Must Comply with New, Stricter EU Commission Regulations. As the Commission announced, the website Booking.com has been classified as a "Gatekeeper" under the "Digital Markets Act" (DMA). This classification entails specific obligations intended to ensure a wider choice for consumers and fair access for business customers. Booking must comply with the required conditions within six months.

The classification as "Gatekeeper" concerns large digital platforms that represent a vital link between business and end customers and thus hold a significant power position in the digital economy. They have the opportunity to act as bottlenecks and influence competition.

In contrast, the advertising operations of social networks X and Tiktok, X Ads and Tiktok Ads, were not classified as "gatekeepers" and therefore do not fall under the DMA. Nevertheless, the European Commission has initiated an investigation of the short messaging service X for its potential "gatekeeper" status. This investigation is supposed to be completed within five months.

The decision of the EU Commission had immediate effects on the stock price of Booking. On the NASDAQ, the Booking share temporarily fell by 1.72 percent to 3,740.25 US dollars.

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