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2018
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2019 HOTREC ANNUAL REPORT
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The growing importance and influence of online intermediation platforms, together with an increasing market
concentration, has led to a generalisation of unfair practices in platform-to-business relationships. Given the
dominance of some platforms (e.g. in the online hotel booking market of around 200.000 hotels in the EU, one
platform controls more than 66% of the market), these widespread practices have become a big hurdle to the
hundreds of thousands of mainly small European businesses concerned.
A new European Regulation to solve a pan-European problem
To tackle this issue, HOTREC actively promoted the adoption of a new European legislation to regulate platforms’
behaviours, including safeguards for the hospitality business. The European Commission responded favourably,
with a proposal for a Regulation issued in April 2018 which identified well the key aspects of platform-to-business
relations and the main areas where European businesses were struggling to obtain a fairer treatment. As the
Regulation was approved by the European Parliament and the Council in a fast procedure, European businesses
will soon enjoy:
•
More clarity and predictability in platforms’ terms and conditions;
•
More transparency on additional distribution channels of the platforms where businesses’ products are
marketed;
•
More transparency on rankings, getting a better idea on ranking mechanisms to be able to make more
informed choices for business decisions;
•
A coherent and objective internal complaint handling process of the platforms, with the possibility of easier
seeking for their rights at other instances as well.
The first step towards a more balanced online market
HOTREC’s actions were effective to draw EU policy-makers’ attention about unfair practices in the platform
economy and to strengthen further the Regulation, so as to better protect businesses’ interests in the online
markets. This Regulation, which shall be applicable from mid-2020, is marking a first important step towards
more balanced online markets. An EU Observatory on the Online Platform Economy is tasked to ensure a proper
implementation of the Regulation and to identify areas where additional EU action might be needed.
More transparency and fairness in platform-to-
business relations through a new EU Regulation
HOTREC actively demanded for and
contributed to a new EU Regulation
which allows for this first step towards
a more transparent and fairer online
distribution market