EU investigates Booking.com over online fraud and phishing risks

The European Commission has announced an investigation into online hotel reservation website Booking.com, according to a statement released on Wednesday. The probe will examine whether the platform is taking adequate measures to eliminate fraudulent listings, phishing scams, and other forms of illegal content in accordance with EU online content rules.

The EU tech and competition enforcer, the European Commission, initiated the investigation following a preliminary probe and after examining risk assessment reports submitted by Booking.com for the past three years. Under the bloc’s Digital Services Act, large online platforms are mandated to combat illegal and harmful content on their sites, or face fines of up to 6% of their global annual turnover for violations.

The EU investigation's scope will encompass fake listings, such as non-existent properties, impersonation fraud, and non-compliant accommodation offers. Additionally, regulators will scrutinize whether Booking.com has adequately identified, assessed, and mitigated the systemic risks associated with these issues. Another aspect of the probe will involve phishing scams that exploit Booking.com's reservation and guest data shared with accommodation providers.

Lastly, the Commission will assess paid-for boosted listings that are not clearly distinguishable as advertisements.

Booking.com is a subsidiary of Booking Holdings. Henna Virkkunen, the EU tech chief, emphasized in a statement that Europeans should be able to book their holidays without fear of becoming victims of scams. She added, "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."