EU Investigates Booking.com over Fake Listing, Phishing Scam Risks

Dow Jones10-21
 
 

The European Union said it is investigating Booking.com over how well the widely used travel booking site addresses the risks of fake listings and phishing.

The European Commission--the EU's executive arm--said on Wednesday it is investigating the company over concerns it isn't doing enough to prevent online fraud and scams.

The probe falls under the EU's Digital Services Act, which was adopted in 2022 and seeks to tackle a broad range of online issues. Companies can face fines of up to 6% of their annual worldwide turnover if the commission decides they are in breach of the rules.

A Booking.com spokesperson said the company is fully cooperating with the commission and that it is committed to working with regulators and law enforcement to combat cybercrime and online fraud.

"Europeans should be able to book their holidays without fear of being scammed," Henna Virkkunen, the bloc's top tech enforcer, said in a statement, adding that the DSA sets out clear obligations for platforms like Booking.com. "We must ensure that the leading booking platform in Europe takes those responsibilities seriously," she said.

The commission said it is looking into how Booking.com identified and assessed the risks linked to fake listings and the measures it puts in place to mitigate the risk of them being shown to users.

It also said it will look at how reservation and guest data is shared with accommodation providers, Booking.com's messaging service and how the website displays so-called boosted listings to see if they comply with the law's ad transparency obligations.

The decision to launch an in-depth probe follows a preliminary investigation based on reports Booking.com gave to the commission as part of its DSA compliance from 2023 to 2026.

 
 

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