Today, the French Directorate General for Competition, Consumption, and Fraud Prevention (Direction générale de la concurrence, de la consommation et de la répression des fraudes, DGCCRF ) has issued an injunction against Booking.com, requiring the company to revise its General Terms and Conditions (CGP) to comply with both the EU Regulation 2019/1150 (P2B Regulation) and the French Commercial Code.
This measure, taken following a formal inquiry requested by the French hotel professional organisations UMIH (Union des Métiers et des Industries de l’Hôtellerie) and GNC (Groupement National des Chaînes Hôtelières), addresses manifestly unbalanced clauses harmful to French hoteliers.
Booking.com faces a substantial daily financial penalty of up to €69.35 million if it fails to comply by 1 January 2026. This decision marks a “significant step towards rebalancing relations between digital platforms and tourism professionals” and is regarded as a victory for fair commercial practices within the digital marketplace.
The Imbalanced Contractual Practices
The main concern raised by the DGCCRF, UMIH, and GNC is the unilateral enforcement of manifestly unbalanced clauses by Booking.com in its General Terms and Conditions (CGP).
These clauses have adversely affected hoteliers, especially regarding:
– Termination rights (“résiliation”);
– Reservation procedures (“réservation”);
– Unilateral modification of conditions (“modification unilatérale des conditions”);
– Restriction of commercial freedom (“restriction de liberté commerciale”);
– Pricing freedom (“liberté tarifaire”);
Regulation (EU) No 2019/1150 (P2B Regulation)
This regulation aims to ensure fairness and transparency for business users of online intermediation services within the EU. The DGCCRF highlighted several specific requirements of the P2B Regulation that Booking.com’s CGP allegedly breached:
– Accessibility, clarity, and comprehensibility of general conditions.
– Notification to business users of any planned changes to general conditions via a durable medium.
– Communication of information regarding additional distribution channels and potential affiliate programmes.
– Fair distribution of mediation costs.
Article L. 442-1 (I) (2°) of the French Commercial Code
This article prohibits imposing or attempting to impose obligations that create a “significant imbalance in the rights and obligations of the parties”. The DGCCRF explicitly stated that “impeding the commercial and pricing freedom of hoteliers notably contravenes this article.”.
The Nature of the Injunction and Its Purpose
The DGCCRF has formally “enjoined… Booking.com to bring its general terms and conditions of service (CGP) into compliance” with relevant regulations. The overarching goal is a “rebalancing of relations between digital platforms and tourism professionals”.
Manifestly Unbalanced Clauses
Both UMIH/GNC and the DGCCRF repeatedly highlight the existence of “clauses manifestement déséquilibrées au détriment des établissements hôteliers” (manifestly unbalanced clauses to the detriment of hotel establishments). These include restrictions on “résiliation, réservation, de modification unilatérale des conditions, ou encore de restriction de liberté commerciale” (termination, booking, unilateral modification of conditions, or restriction of commercial freedom).
Legal Basis: The P2B Regulation and French Commercial Code
The injunction is grounded in the P2B regulation and the French Commercial Code. Specifically, the above-referred article of the Commercial Code prohibits “attempting to submit or submitting the other party to obligations creating a significant imbalance in the rights and obligations of the parties.”
The DGCCRF outlines specific P2B requirements that Booking.com’s CGP must fulfil, including transparent terms, notification of changes, details on distribution channels, fair mediation costs, transparency in ranking criteria, and appropriate notice or justification for account suspension or termination.
The consequences of non-compliance are severe: failure to comply by 1 January 2026 could attract a daily financial penalty for Booking.com, potentially amounting to 69.35 million euros.
Carlos Torres
