EU Designates Booking as 'Gatekeeper' in Tech Regulations

The European Commission on Monday classified hotel reservation website Booking.com as a "gatekeeper" under the Digital Markets Act (DMA).

According to Reuters, this designation subjects the company to strict EU obligations, including requirements to moderate content, ensure fair competition, and facilitate user switching between services.

The Commission also initiated a market investigation into the status of social media network X (formerly Twitter), following its rebuttal against being labelled a gatekeeper. Meanwhile, online advertising services X Ads and TikTok Ads did not meet the criteria to be classified as gatekeepers.

This decision follows an earlier announcement in March, where the Commission indicated that X, TikTok owner ByteDance, and Booking.com might potentially meet the EU criteria for gatekeeper status.

While Booking.com has accepted its designation, X is challenging the classification, prompting the Commission to launch an investigation.

A spokesperson for Booking.com stated, "We have been working with the European Commission since the beginning, in anticipation of today's decision. We are currently reviewing the designation decision and intend to continue our cooperation with the European Commission in a constructive way as we develop solutions to comply with the provisions."

ByteDance, the owner of TikTok, was previously designated as a gatekeeper in July 2023, but the company has challenged this decision at Europe's second-highest court.

The Digital Markets Act aims to curb the market dominance of tech giants by imposing stricter rules on their operations. Companies with over 45 million monthly active users and a market capitalization of 75 billion euros are classified as gatekeepers, provided they offer core platform services for business users.

Following its designation, Booking.com has six months to submit a detailed compliance report. However, certain DMA rules take effect immediately, including the obligation to inform the Commission of any planned mergers or acquisitions in the digital sector.