Brussels puts Booking in the crosshairs for fraudulent ads and scams
The European Commission is investigating whether the platform is doing enough to mitigate these risks and opaque advertising
-
CAT -
CAST
BrusselsBrussels has opened an investigation into Booking, which allegedly failed to combat fraudulent ads, identity theft scams, and published featured ads without labeling them as advertising. The European Commission believes there are indications that the actions of the tourist accommodation platform constitute breaches of the Digital Services Act.
Specifically, it reproaches the platform for a lack of "due diligence" and "effectiveness" in assessing the risks of these offers that violate regulations, and wants to verify that the platform detects, assesses, and removes them quickly enough.
On the other hand, Brussels wants to verify if the platform is sufficiently shielded against identity theft attempts, a practice known as phishing. It will examine how client booking data is shared with accommodations and whether the design of the messaging service is secure enough so that confidential client information—such as credit card numbers—cannot be requested to make fraudulent payments.
Finally, the European Commission criticizes Booking's lack of advertising transparency. Tourist accommodations can pay to have their ads gain more visibility, and now Brussels wants to ensure that users can recognize that these "featured" results are advertising.
"Europeans must be able to book their holidays without fear of being scammed," stated the Executive Vice-President of the Commission, Henna Virkkunen. "We must ensure that the leading platform in Europe takes these responsibilities seriously," she added.
The decision comes after a preliminary investigation based on the reports that Booking has been submitting since 2023. Now, European authorities will continue gathering evidence and requesting information and inspections. In the event of confirming its suspicions, Brussels will be able to adopt precautionary measures and sanctions for non-compliance, which could lead to a fine.
The investigation is another sign of the EU's attempt to regulate large platforms, which Booking has criticized in the past. On this occasion, the booking platform states that it is "fully cooperating" with the Commission and defends that "the security, trust, and protection of personal data are fundamental priorities" for the company.
