Italy watchdog probes travel giant Booking.com

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ROME - Italy's AGCM competition authority said Wednesday it was investigating online travel giant Booking.com for allegedly offering more visibility for accommodation providers that pay them higher commission.

AGCM officials and members of Italy's Guardia di Finanza financial crimes police carried out inspections on Tuesday at the premises of Booking.com Italy, the authority said in a statement.

"The Italian Competition Authority has launched an investigation into Booking.com, Booking.com International, and Booking.com (Italia) for engaging in unfair commercial practices," it said.

It said the platform appeared to offer accommodation providers belonging to its Preferred Partner Programme greater visibility in its search results, including highlighting quality and value for money.

Yet "in the Authority's view, selection for the Preferred Partner Programme appears to be driven largely by criteria that favour accommodation providers paying higher commissions to Booking.com, rather than by the quality of what they offer", the statement said.

"As a result, the way those providers are presented, together with claims by Booking.com highlighting their quality, may mislead consumers into believing that, all else being equal, they offer better overall value for money than providers not in the programme."

This could even lead consumers to book accommodation that was on average more expensive, it said.

A spokesperson for Booking.com Italy told AFP that the company was "cooperating fully with the AGCM in the ongoing investigation", and said it believes that its Partner Programme "meets the requirements of consumer protection legislation".

The platform and website are available in 45 languages and claim to have facilitated 6.8 billion guest arrivals since 2010.

It also provides flights and car rental.