A growing legal action against Booking.com has now attracted 753 hotels across Spain, with compensation claims currently valued at around €200million and expected to rise significantly in the coming months.
The lawsuit, being coordinated by legal firm Eskariam, centres on so-called ‘parity clauses’ that hotels claim restricted their ability to offer lower prices through other sales channels.
According to Juan Alvarez Goya, Chief Operating Officer of Eskariam, a further 580 hotels are currently in the process of joining the action. If all are added, the total value of the claims could exceed €400million.
Andalucia key target for recruitment
Despite being one of Spain’s most important tourism regions, Andalucia remains underrepresented in the legal action.
Only 25 Andalucian hotels have joined the claim so far, representing around €20million of the total amount being sought.
As a result, Eskariam has intensified its efforts in the region, particularly in Malaga and along the Costa del Sol, where many hotels could potentially qualify to participate.
The firm hopes its partnership with Andalucian law firm Montero Aramburu will help encourage more businesses to join the case.
One of the key messages being communicated to hotel owners is that they should not fear potential retaliation from Booking.com for participating in legal proceedings.
Court action expected after summer
Eskariam expects formal litigation to begin between September and October once the summer tourist season has ended.
Before launching court proceedings, the firm intends to present Booking.com with a proposal for an out-of-court settlement.
However, company representatives acknowledge they are not optimistic about reaching an agreement, noting that Booking.com has consistently defended its business practices and denied causing financial harm to hotels.
The legal team has also alleged that some documentation previously available through Booking.com’s internal systems has been removed, potentially requiring courts to order disclosure of relevant information during proceedings.
EU competition rules in focus
The case comes as Booking.com faces increased scrutiny under the European Union’s Digital Markets Act (DMA).
The European Commission has designated the company as a ‘gatekeeper’, a status applied to major digital platforms with significant market influence.
Under the DMA, gatekeepers face additional obligations aimed at promoting competition, including restrictions on the use of parity clauses that limit the commercial freedom of businesses using their platforms.
Backed by €50million funding package
Eskariam has recently strengthened its financial position through a €50million senior credit facility arranged by US investment firm Victory Park Capital.
The funding will be used to expand litigation teams, invest in technology and support the firm’s business model, which involves covering legal costs in exchange for a share of any compensation awarded.
The company currently manages more than €1.5 billion in competition-related claims and aims to increase that figure to €3.5billion before 2030.
