Why Booking.com is facing an EU probe
What's the story
The European Union (EU) has launched an investigation into online travel agent Booking.com over alleged failures to combat fake listings and phishing scams. The probe is the first against Booking.com under the Digital Services Act (DSA), a major online content law that applies to various platforms, including social media and digital marketplaces.
Investigation details
Investigation looking into potential violations
The EU is concerned that Booking.com has downplayed the impact of fraud and unlicensed accommodation.
It also fears that the company isn't doing enough to protect users' data from being misused for scams.
The investigation will look into whether the Netherlands-based firm violated rules by not clearly labeling as ads those listings whose providers paid for a higher ranking in search results shown to users.
Company statement
Booking.com responds to EU's investigation
In response to the EU's investigation, Booking.com said it was "cooperating fully" and that "security, trust and the protection of personal information are top priorities."
The spokesperson added, "We remain committed to working with relevant governments, regulators, law enforcement and industry partners to combat cybercrime and online fraud, and protect travelers and partners."
This comes as over 20 very large online platforms must comply with DSA's stricter rules or face fines up to 6% of their global turnover.
Risk assessment
EU official criticizes risk assessment efforts
A senior EU official has criticized Booking.com for its risk assessment efforts since 2023.
The official said, "We feel that what they have done is absolutely substandard."
The commission will determine if the online platform "properly identified" risks linked to illegal content such as non-existent properties and fraudsters posing as property owners.
Data security
Phishing scams and data protection concerns under scrutiny
The EU will also look into whether Booking.com is doing enough to tackle the risks posed by phishing scams to European consumers.
Phishing is the practice of tricking people into sharing sensitive information through deceptive messages.
The investigation will also examine how reservation and guest data is shared with accommodation providers, and if Booking.com has implemented "sufficient safeguards to prevent data from being misused."