Booking.com accused of inflating prices and abusing customers

Booking.com faces legal action in the Netherlands, where a consumer group said Tuesday it had gathered more than 200,000 people accusing the platform of inflating hotel prices and using deceptive online tactics.

The Amsterdam-based company, which compares hotel and flight prices for bargain-hunting holidaymakers, "fundamentally" rejected the claims, calling them "very, very strange."

The Dutch consumer association Consumentenbond is taking issue with Booking.com's practices dating back to 2013, which it says distort competition and drive up hotel prices on several booking platforms. A preliminary estimate is "around one billion euros in damages for consumers," Babs van der Staak, a spokesperson for the association, told AFP.

The lawsuit could target fake discounts or alerts such as "only one room left," which encourage users to book. The plaintiffs claim that these measures have affected not only Booking.com's own listings but also led to price increases on competing sites and hotel websites. "This case is fundamentally about fairness," said Babs van der Staak.

The association wants assurances that Booking.com "ceases its illegal actions and compensates consumers for the harm already caused," it added. Booking.com said no formal legal action has yet been filed, but vowed to contest any legal action. "This doesn't suit us. This is not how we work," a company spokesperson said. "From day one, our sole focus has been on getting the best prices for consumers," added the spokesperson, who requested anonymity.

Babs van der Staak said Booking.com had been invited to negotiate a settlement before possible legal action. According to her, anyone residing in the Netherlands who has booked a hotel online since January 2013, including while traveling abroad, could participate in the legal action.

German, Spanish and Swedish competition authorities also found that the platform had violated fair market rules.