Italy’s competition authority has opened an investigation into Booking.com over alleged unfair commercial practices linked to how accommodation providers are ranked and promoted on its platform.

The Autorità Garante della Concorrenza e del Mercato said on Wednesday that the probe targets Booking.com B.V., Booking.com International B.V. and Booking.com (Italia) S.r.l., focusing on the company’s “Preferred Partner” and “Preferred Plus” programmes. According to a statement cited by Reuters, hotels in these schemes receive greater visibility in search results and enhanced presentation on the site.

The regulator said the selection criteria for these programmes appear to favour accommodation providers that pay higher commissions rather than those offering better quality or value. It warned that this could mislead consumers into believing featured properties represent superior options.

In its statement, the authority said Booking.com “seems to offer accommodation providers belonging to the Preferred Partner Programme… greater visibility… and claims highlighting service quality and value for money,” despite eligibility criteria that “do not appear to justify the advantages afforded to those providers”.

The watchdog added that the way such listings are presented “may mislead consumers into believing that… they offer better overall value for money,” potentially prompting users to book more expensive accommodation.

Reuters reported that inspections were carried out on Tuesday at the Italian offices of Booking.com, with assistance from Italy’s financial police. The investigation forms part of a broader scrutiny of digital platforms’ influence over consumer choice and pricing transparency.

Consumer group Codacons welcomed the move, warning that ranking mechanisms can have a direct impact on spending decisions. In comments reported by ANSA, the organisation said: “People who use hotel booking platforms like Booking.com have the right to maximum transparency, because the results and information offered by these sites can influence consumers’ financial decisions.”

Codacons added that emphasising quality or value “in the absence of objective criteria and simply because the business pays higher commissions, would be a form of deception for users,” potentially leading to financial harm.

The association also highlighted the platform’s market influence in Italy, stating that around 70 per cent of hotel bookings are made through specialised websites, with Booking.com accounting for 42 per cent of digital bookings.

Retail Systems reported earlier this month that Booking.com also alerted customers to a cyber incident involving unauthorised access to reservation data. The company said “unauthorised third parties” had accessed some guest booking information, including names, contact details and reservation data, but added that financial information was not compromised.

A company spokesperson said: “Upon discovering the activity, we took action to contain the issue. We have updated the PIN number for these reservations and informed our guests,” while advising users to remain vigilant against potential scams linked to the breach.

---