EU investigates Booking.com over fraudulent listings, phishing scams

The European Commission has opened an investigation into Booking.com to determine whether the online accommodation platform is doing enough to prevent fake listings and phishing scams.

The probe marks the first investigation into Booking.com under the Digital Services Act (DSA), the EU’s sweeping law regulating online platforms.

Officials believe Booking.com may not have “diligently assessed or effectively mitigated risks” related to fraudulent listings and phishing scams. The platform may have also breached the DSA when it comes to transparency because it did not clearly label as ads listings that paid for a higher ranking in search results.

In a statement, the commission said it will examine whether the company has identified and assessed systemic risks linked to the dissemination of illegal content.

“Fake listings, such as for non-existent properties, impersonation fraud, and non-compliant accommodation offers may have negative effects on consumer protection,” the statement said.

The investigation will also focus on risks related to the way reservation and guest data is shared with accommodation providers and whether the company has sufficient safeguards to prevent data from being misused to carry out phishing or solicit fraudulent payments.

The third aspect of the probe will focus on advertising transparency and whether the company is living up to its obligations as outlined in the DSA.

“Accommodation providers can make their listings more visible in Booking.com’s search results by paying a higher commission. Users should be able to clearly recognise that these ‘boosted listings' are in fact advertisements,” the statement said.

There is no timeline for the investigation but the opening of formal proceedings also empowers the commission to take further enforcement steps, such as interim measures and non-compliance decisions. However, the DSA also empowers the commission to accept commitments offered by Booking.com to remedy the matters under investigation.

European Tech Commissioner Henna Virkkunen said Europeans should be able to book their holidays without fear of being scammed. “The Digital Services Act sets clear responsibilities on platforms to address these risks, and we must ensure that the leading booking platform in Europe takes those responsibilities seriously,” she said.

Booking.com has said it will cooperate with the commission.

An exercise carried out by MaltaToday last summer to take a snapshot of short-let accommodations in Malta found at least 100 unlicensed properties listed on Booking.com. The scope of the exercise was not to out the online platform but to give an idea of the number of holiday apartments that were operating below the Malta Tourism Authority’s radar. Nonetheless, at least 100 Malta listings on Booking.com were not on the MTA’s list of licensed properties, which means they are effectively operating illegally.