Swiss Price Surveillance Office Orders Booking.com to Slash Hotel Commissions by 25%

May 28, 2025 by
Frank Calviño

The Swiss Price Surveillance Office has ruled that Booking.com’s hotel commission fees are abusively high, following a detailed investigation that began in 2017. In an official statement, the watchdog has ordered Booking to reduce its commission fees by up to 25%, a move intended to alleviate financial pressure on the hotel industry and consumers alike.

This mandated reduction will take effect three months after the ruling becomes final and will remain in place for a maximum of three years, as per Swiss legal requirements.

Boosting Hotel Competitiveness Amid a Tough Global Market

According to the Swiss government, this measure is designed to “strengthen the competitiveness of Swiss hotels in a difficult global market and indirectly reduce the financial burden on customers.” The hospitality sector, still recovering from global events and fierce international competition, is seen as a key area needing regulatory support.

Booking’s Response: “Our Service Is Optional and Valuable”

In response, Booking.com strongly opposed what it called a forced price reduction. Speaking to Europa Press, the platform argued that its service is “entirely optional” and that the commissions charged reflect the “immense value” provided to accommodation partners.

“Our partners have many ways to market their properties to customers, so they can choose whether they want to advertise on our platform or on another,” the company stated.

Booking has 30 days to appeal the decision to the Federal Administrative Court.

Wider European Pressure: Booking Faces Regulatory Challenges in Spain

The Swiss ruling follows another major regulatory blow for Booking in Spain, where the National Court temporarily suspended a record €413.2 million fine imposed by the National Commission for Markets and Competition (CNMC). The Spanish watchdog found the platform guilty of abusing its dominant position, favoring listings from hotels with higher booking volumes and thereby hindering fair competition among online travel agencies.

Booking claims that such regulatory decisions hurt both hotels and consumers, arguing that their platform enhances visibility and drives business for smaller hotels.

The Future of Online Travel Marketplaces Under Scrutiny

These developments indicate growing scrutiny of European dominant digital platforms, as regulators aim to protect local markets and ensure fair competition. With Switzerland and Spain leading regulatory actions, other EU countries may follow suit, potentially reshaping how commission-based platforms like Booking.com operate in the region.

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