EU investigating Booking.com over action on fraud cases
The European Commission has launched an investigation into Booking.com under the Digital Services Act. Regulators are concerned about the platform's failure to prevent fraudulent listings and its lack of transparency regarding paid search rankings.
Why it matters
This investigation highlights the EU's aggressive enforcement of the Digital Services Act to protect consumers from online scams and deceptive advertising practices on major platforms.
The EU is taking action against online travel agency Booking.com over how the reservations platform combats scams amid evidence of a surge in alleged fraud cases this year.
The European Commission said the site is not tackling the risk of fraudulent listings and so-called phishing scams.
Brussels is also investigating if the company is not clearly labelling as ads those listings which secure a higher ranking in online search results because their providers have paid to have the entry boosted.
The commission said that Booking.com's efforts in preventing fraud and scams have been "absolutely substandard".
Announcing the investigation under the Digital Services Act (DSA), the commission said it will explore if Booking.com has "properly identified and assessed the systemic risks linked to the dissemination of illegal content".
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