Italy’s antitrust regulator, the Autorità Garante della Concorrenza e del Mercato (AGCM), announced on April 22 that it has opened a formal investigation into Booking.com’s hotel ranking system. The probe focuses on the company’s Preferred Partner Program, which rewards hotels that pay higher commissions with better visibility and a special endorsement on the platform. AGCM alleges that the program’s selection criteria are largely driven by commission levels rather than the quality of service, potentially leading consumers to book more expensive accommodations under the impression that they are receiving superior value.
The investigation follows a similar inquiry that AGCM closed in March 2024 after Booking.com agreed to make changes. The new probe targets Booking.com B.V., Booking.com International B.V., and Booking.com (Italy) S.r.l., and examines whether the ranking algorithm misleads consumers by presenting higher‑commission hotels as better options. Booking.com has stated that competition concerns should be addressed at the EU level rather than on a country‑by‑country basis, but the Italian authority is pursuing its own regulatory action.
If the investigation finds violations, Booking.com could face fines and be required to alter its ranking methodology. Such a decision would not only affect the company’s operations in Italy but could also set a precedent for similar actions in other European markets, intensifying scrutiny of online travel platforms’ commission structures. The probe underscores the growing regulatory focus on how digital marketplaces balance revenue generation with fair competition and consumer protection.
The investigation highlights a broader trend of increased regulatory oversight of large online platforms across Europe. By scrutinizing Booking.com’s Preferred Partner Program, AGCM is testing the limits of how commission‑based visibility can influence consumer choice, a question that has implications for the entire online travel industry. The outcome of this inquiry will be closely watched by industry participants and regulators alike.
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