Expedia fined – Booking.com growing

Paris. It's been a year since France's government killed the OTAs' rate parity by means of the "Macron law". But it seems to be a long way for hoteliers to regain control over distribution. The OTAs are still powerful but unions are making sure they respect the law. One of them managed to unmask few of Booking.com's misleading promises hidden among its "Charter of Good practice".

Paris/Brussels. Since August 7, 2015 the famous "Macron Law", which gives French hoteliers total freedom towards OTAs, has been in force. According to article 133 of this law, all contracts between French hoteliers and OTAs signed before this date ceased to have effect. In other words, current contracts were automatically cancelled and new ones must be signed by both partners. A formality, but not for Booking.com. The OTA only sent an amendment to its hotel partners, which does not correspond to French law and the 'mandate' contract that the relationship between OTAs and hotels is based on. What was supposed to be a simple legal formality seems to have turned into a serious disagreement, which could lead to hundreds of French hotels leaving major booking platforms.

Paris. After Booking.com, which was summoned to give up most of its so-called "unfair" commercial practices, it is now Expedia's turn to be facing France's frustration towards OTAs.