Update: Booking Faces EU Investigation Over Fraud Risks, Ad Transparency - Yahoo Finance
Booking Holdings (BKNG) is under investigation by the European Commission for potential violations of the Digital Services Act regarding fraudulent listings and phishing scams.
The investigation will assess Booking's handling of fraudulent listings and the misuse of booking and guest data, the regulator announced Wednesday. The Commission will also examine whether paid boosted listings are clearly labeled as ads and include required information about their sponsors and targeting.
Investigation Scope
The European Commission added that it will prioritize the investigation and may seek additional information, conduct interviews or inspections, or take further enforcement measures if violations are found.
Market Reaction
Following the announcement, Booking shares were down 3.6% in Wednesday trading, reflecting market concerns about potential regulatory penalties and reputational damage.
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