German Court Rules Against Booking.com's Rate Parity Clauses

The Regional Court Berlin II has issued a landmark judgment holding Booking.com BV and its German subsidiary, Booking.com (Deutschland) GmbH, liable for compensating over 1,000 German hotels. The case concerns so-called best price clauses that Booking.com used between January 1, 2013, and January 31, 2016.

The court found these clauses violated German competition law, giving hotels the right to seek damages.

Rate parity clauses

Booking.com’s “best price” or “rate parity” clauses were contractual terms that restricted hotels from offering lower room rates or better conditions on their own websites or through competing online travel agencies.

Initially, the platform required wide parity, meaning hotels had to offer their lowest rate across all channels, including direct bookings and other OTAs. From July 1, 2015, Booking.com switched to narrow parity, which only prohibited lower rates on the hotel’s direct website compared to Booking.com.

These clauses prevented hotels from offering discounts directly to guests, passing savings from avoiding commissions, or using tactical pricing strategies such as last-minute deals. The restrictions effectively limited competition and distorted pricing dynamics in the online hotel booking market.

Compensation details

The court’s decision confirms legal liability but leaves compensation amounts to be determined by hotels demonstrating actual financial losses. This opens the door for over 1,000 hotels in Germany to pursue claims.

Given that Booking.com implemented similar clauses throughout Europe, this ruling could trigger claims across other EU markets. It sets a precedent that strengthens antitrust actions against dominant online travel platforms and may push these companies to reassess contracts that restrict hotels’ pricing autonomy.

Booking platforms may need to adapt their agreements worldwide to avoid future legal challenges.

For a deeper dive, read our dedicated article on rate parity in hospitality, which explains how it works and how it’s managed.

Photo by Dovlet Hojayev on Unsplash