EU opens formal investigation into Booking.com fraud risks

The European Commission has opened formal proceedings to investigate whether Booking.com failed to adequately address fraudulent accommodation listings and phishing risks, and whether it clearly labels paid search placements as advertisements. The inquiry will assess the platform’s compliance with the European Union’s Digital Services Act (DSA); it does not establish that the company violated the law. The Commission said it will examine whether Booking.com properly identified and assessed risks linked to illegal or noncompliant listings, including offers for nonexistent properties and impersonation fraud. It will also assess whether the company took effective steps to reduce those risks, such as removing fraudulent listings. A second focus is the use of reservation and guest information shared with accommodation providers. Investigators will examine whether Booking.com assessed the risks of that data being exploited in phishing attacks or fraudulent payment requests, and whether its safeguards and messaging systems address them. The Commission will also review listings that receive greater visibility after accommodation providers pay for promotion, including through higher...