There is no fixed legal deadline for the investigation to conclude, but Booking.com can propose measures to address the European Commission's concerns.
The European Union has launched an investigation into online travel platform Booking.com on Wednesday over concerns that it has failed to adequately address fake listings and phishing scams.
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EU authorities suspect the company has underestimated the impact of fraud and unlicensed accommodation on its platform and has not done enough to prevent users' data from being exploited by scammers.
"Europeans should be able to book their holidays without fear of being scammed," EU tech chief Henna Virkkunen said in a statement.
The EU said it was also looking into whether the firm breached rules "because it did not clearly label as ads those listings whose providers paid for a higher ranking in search results shown to users".
The probe marks the first investigation into Booking.com under the Digital Services Act (DSA), the EU's sweeping law regulating online platforms, including social media and digital marketplaces.
The DSA "sets clear responsibilities" and "we must ensure that the leading booking platform in Europe takes those responsibilities seriously", Virkkunen added.
Booking.com pledges to cooperate
Booking.com said it was "cooperating fully" with the investigation, adding that "security, trust and the protection of personal information are top priorities".
"We remain committed to working with relevant governments, regulators, law enforcement and industry partners to combat cybercrime and online fraud and protect travellers and partners," it added.
Under the DSA, Booking.com could face fines of up to 6% of its global annual turnover if violations are confirmed.