European Commission investigating Booking.com’s fraud, phishing prevention measures

The European Commission is investigating Booking.com under the Digital Services Act to assess its measures against fraudulent listings and scams. Concerns include non-existent properties, impersonation, and unclear paid listings. Booking.com pledges cooperation. Penalties, if any, could reach 6% of global revenue. Booking Holdings, the parent company, is US-listed.

EU regulators are investigating Booking.com for potential breaches of the Digital Services Act, focusing on fake listings, phishing scams, and transparency of paid placements. The probe examines the company's risk assessment and fraud prevention measures. Booking.com faces potential fines up to 6% of its global turnover. The Dutch consumer association reported significant financial losses due to scams involving the platform.

Booking Holdings (BKNG) shares fell 3.8% after the European Commission began investigating potential breaches of the Digital Services Act, including risks from fake listings and unclear ad labeling. The stock later recovered slightly to $158.11, down 3.6%. The company faces regulatory uncertainty, which may impact its European operations and investor sentiment. BKNG is down 25.8% year-to-date and 28% below its 52-week high.

The European Commission is investigating Booking.com for potential violations of the Digital Services Act, focusing on fake listings, phishing, and unlabelled ads. The probe follows a review of Booking.com's risk assessments. The company faces fines up to 6% of global revenue if found in violation. Booking.com states it prioritizes user safety and is cooperating with regulators.

The European Commission opened an inquiry into Booking.com, investigating potential violations of the Digital Services Act related to fraudulent listings, phishing scams, and transparency in ad labeling. Booking.com is cooperating, stating security and trust are priorities. The EC will examine data sharing practices and messaging service design. Separately, scam prevention expert Erin West discussed tracking overseas scammers via digital records.

EU regulators are investigating Booking.com for alleged failures to protect consumers from fake listings and scams, potentially breaching the EU's Digital Services Act. The company could face fines up to 6% of its global revenue. Booking.com denies wrongdoing and says it is cooperating with regulators. The investigation follows reports of increased fraud cases involving the platform.