The EU Commission launches a DSA probe into Booking Holdings' Booking.com to determine whether it is doing enough to combat fraudulent listings and phishing

Booking.com must now clearly label paid-for listings as ads, changing how search results are presented.

The European Commission has launched an investigation into Booking.com under the Digital Services Act (DSA) due to concerns about the platform's handling of fraudulent listings and phishing scams. The Commission stated that Booking.com's efforts to combat these issues have been "absolutely substandard" and that the company may not be adequately assessing or mitigating the systemic risks associated with illegal content. Specifically, the investigation will examine whether Booking.com is effectively preventing scams involving non-existent properties and impersonation fraud, where scammers pose as owners to collect payments for fake rentals or phish for additional funds. Additionally, the probe will assess if paid-for listings that receive higher search rankings are clearly identified as advertisements, as required by the DSA. Reports from Dutch regulators indicate a tenfold increase in fraud cases on Booking.com this year, with significant financial losses reported by affected users. The Commission plans to conduct an in-depth investigation as a priority.

This investigation signals increased regulatory scrutiny on large online platforms regarding their responsibilities in preventing fraud and ensuring transparency. The DSA empowers the EU to demand more robust risk assessments and mitigation strategies, potentially setting a precedent for how other digital services manage illegal content and deceptive practices. The focus on "substandard" efforts suggests a low tolerance for platforms that do not proactively address known vulnerabilities, impacting how user-generated or advertiser-placed content is policed.

The outcome of this probe could lead to stricter enforcement of advertising disclosure rules across the travel sector and beyond, affecting how companies like Booking.com monetize visibility and how consumers make informed decisions. It also highlights the growing challenge of online fraud, with official figures showing substantial financial damages and increasing case numbers, underscoring the need for platforms to invest more in user protection measures.