Booking.com Price Parity: CJEU Ruling and DMA Regulations

The article analyzes the dispute over price parity clauses (wide and narrow) in Booking.com's business model. The main flashpoint is the conflict between protecting the platform's investments against so-called free riding and the competitive freedom of hotels. While Booking.com argues that parity protects customer acquisition costs and search functions, the CJEU in case C-264/23 ruled that investment protection does not automatically legitimize restrictions on competition. The Court found a lack of objective necessity to apply these clauses as ancillary elements of the reservation service. The text sheds light on the economic and legal aspects of how intermediary platforms operate in light of EU law and DMA regulations, pointing to the thin line between model profitability and permissible market restrictions.