Booking Holdings boss Glenn Fogel has voiced concerns on the current regulatory environment in Europe, saying it could stifle innovation and investment.
Decisions from European lawmakers have gone against the company in recent months, from its blocked acquisition of Etraveli to the threat of being tagged a digital gatekeeper under the looming Digital Markets Act.
“They look at you and say, ‘We’re not so sure we like that so much,’ and I say, ‘Why? This is better for everyone. What is the issue?’ And I’ve yet to get a real answer on this.”
Speaking to Phocuswright senior vice president of research and product strategy Charuta Fadnis at ITB Berlin Tuesday, Fogel conceded that the company’s size was a factor in regulators scrutinizing its deals more closely but added it’s small in terms of the total size of the market.
The argument did not appease regulators when it came to the Etraveli decision, and Booking has said it will appeal.
“The decision by the commission regarding our trying to buy Etraveli, who we have had a very long and fruitful connection with, to not allow us to was wrong on the law, on the facts, and it’s bad policy, and it’s a shame,” Fogel said.
Fogel also said he’d like to see “smart regulations,” adding that the stance from regulators could make venture capitalists think twice about investing in the region.
He said he expects the deal to go through but “much further down the road.”
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Fogel added that although the company’s flights business was up 58% last year, there’s so much more to be done to improve the experience.
He expressed frustration around the Digital Markets Act and said the company is working with regulators on what it means to be tagged a gatekeeper.
“It’s disappointing when it first came out. Why do we need to be part of the DMA?” Fogel said. “Again, as I pointed out, we may be a larger company than many in the travel industry but a very, very small company compared to the others. When you see the size of Google or Meta or any of the others, we’re a tiny little minnow, and I’m not sure what problem they’re trying to solve. What exactly is the problem? Is there not enough competition? This is the most competitive industry in the world. But, OK, this is the law, we’ll go with it because we fit the qualifications that they have put out. Now let’s work cooperatively to come up with what will be the best way to implement or what are the ramifications of it.”
Fogel added that it would be more costly with the company having to spend “time, energy, effort and money” to meet these new regulations, which would slow down innovation.
