Booking Holdings refused to seize the possibility of leaving the EU due to “stupid” regulatory burdens which, according to its chief executive, put the online travel group at a “competitive disadvantage”, according to the FT.
Reservation: must comply with European rules on digital purchases
Glenn Fogel attacked new EU digital rules which force him to allow hotel companies to offer lower prices on their own websites than those of Booking.com, a subsidiary of the American group based in Amsterdam.
Booking sees a competitive disadvantage
“If the regulations are not smart regulations, then you are at a competitive disadvantage,” he said Thursday at the Financial Times TNW technology conference in the Netherlands. “I believe in offering customers the best prices. Any regulation that prohibits us (from doing that) is, in my opinion, a stupid regulation.”
Asked if he would consider moving the $135 billion company’s headquarters out of the EU due to concerns about the European Union’s growing control over tech groups, Fogel said. replied: “I never say no to anything that is possible.”
The threat follows a series of regulatory setbacks for the company in the EU, as the bloc seeks to challenge the market dominance of the world’s biggest tech companies through new legislation and a series of actions antitrust.
Last month, Booking became the first European-based company to be designated an “online gatekeeper” under the EU’s landmark Digital Markets Act (DMA), which imposes additional burdens on the company, such as require it to avoid promoting its own services before its launch. competitors.
Fogel, who runs Booking Holdings as well as Booking.com’s largest subsidiary, expressed concerns that the platform would be affected both domestically and in Europe. Spain’s antitrust authority imposed a provisional fine of €486 million on Booking in February for alleged anti-competitive behavior.
Last year, Brussels regulators blocked Booking’s €1.63 billion takeover of Swedish group Etraveli, fearing it would harm competition. Booking is appealing the decision to the European courts in Luxembourg. However, Brussels’ decision contradicts the UK’s earlier approval of the deal.
Fogel’s attack on European regulators comes as they prepare to use their new powers under the DMA to take on America’s biggest tech companies.
In the coming weeks, European competition watchdogs are expected to charge Apple for allegedly harming competition in its mobile app store. The EU is also considering taking legal action against Alphabet, Google’s parent company, for enabling the use of personal data by its own app store and by Meta, owner of Facebook, for advertising purposes.
Fogel said: “We were born here. We were born in the Netherlands. We have a great store here. But I call on (the EU) to maintain this. Brussels and the Member States need to think very seriously. How can we create a climate that ensures Europe leads the way in technology?
No unfair competition
The European Commission declined to comment on his remarks, but said: “With the DMA, business users who rely on access control platforms to reach their customers will now have unprecedented opportunities.
He added: “Access regulators can of course continue to be competitive, but they cannot impose restrictions on their business customers. So-called “best prices” cannot come at the expense of fair competition. »