BRUSSELS, Oct. 21 (Xinhua) -- The European Commission on Wednesday opened a formal investigation into Booking.com over its possible failures to tackle fraudulent listings and phishing scams, and to clearly identify paid advertisements.
The investigation will examine whether the platform properly assessed and mitigated risks from fake accommodation listings, such as non-existent properties, impersonation fraud and offers that fail to comply with applicable rules under the European Union's Digital Services Act (DSA), the Commission said in a statement.
It will also scrutinize how reservation and guest data is shared with accommodation providers and how Booking.com operates its messaging service. Investigators will assess whether sufficient safeguards exist to prevent data misuse for phishing attacks and fraudulent payment requests.
According to the statement, accommodation providers pay higher commissions to secure greater visibility in search results on the platform, and the Commission will examine whether these boosted listings are clearly labeled as advertisements and whether users can easily identify who placed and paid for them.
Under the DSA, users should be able to distinguish between listings prominently displayed because they match a search and those promoted through payment, the Commission said.
If confirmed, the suspected failures would breach the DSA's obligations on systemic risk assessment, risk mitigation and advertising transparency.
The Commission said it would prioritize an in-depth investigation and gather further evidence through information requests, interviews or inspections. It may also impose interim measures or accept commitments from Booking.com to address the concerns.
The opening of proceedings does not prejudge the investigation's outcome, it added. Booking.com was designated as a Very Large Online Platform under the EU's DSA on 25 April 2023. ■
