EU Institutions reach political agreements on Digital Markets and Services Acts

EU lawmakers reached a landmark agreement on Friday 25 March 2022 which will lead to the definitive adoption of the Digital Markets Act (DMA). On this occasion, HOTREC applauded the EU for setting new rules targeting digital gatekeepers which exercise disproportionate power towards their business users and consumers.

HOTREC notes that the market leader for intermediated online hotel sales, which commanded almost 70% of the European market in 2019, will feature among the ‘designated gatekeepers’ based on the criteria set out by EU lawmakers. EU lawmakers have also adopted the right remedies to reign in online platform gatekeeper power in this area by setting out a ban on narrow price parity clauses, which prevent hoteliers from offering a better price on their own channels than the platform and providing business users with better access to the data generated by their listings.

One month later, on Monday 25 April, the Council and European Parliament reached a provisional political agreement on the Digital Services Act (DSA). The DSA meets the HOTREC White Paper for Hospitality policy request objective to revise the EU regulatory framework to ensure that ‘what is illegal offline is illegal online’. It will largely facilitate the removal of illegal offers of services such as illegal offers of Short Term Rentals.

The DSA will introduce several requirements to online platforms based on their size and role. Online marketplaces will notably be required to collect and display information on the products and services sold by sellers in order to ensure that consumers are properly informed.