The right-wing government in Hungary has submitted a legislative proposal to the Hungarian Parliament regarding online accommodation platforms

Hungary’s Competition Authority initiated an accelerated sector inquiry into Booking.com in August. The purpose of the inquiry is to determine whether the online platform has engaged in any abusive practices by withholding payments from hosts and other property owners, taking advantage of its dominant position.

The proposed bill is based on observations by the Budapest Chamber of Commerce and Industry (BKIK) and findings by authorities.

The proposed “Booking Law” not only prohibits the practice of price parity but also holds online platforms accountable for the online reviews appearing on their platforms.

As reported and advocated by the founder and author of the online magazine Spabook, this issue had been at the top of Hungarian travel and tourism news headlines for some time.

According to him, the Hungarian parliament is expected to approve the proposal.

This summer online accommodation platform Booking.com abused its dominance by withholding payments from hosts worldwide for months.

According to the bill pending in Budapest, accommodation platforms must fulfill their payment obligations to the hosts within 45 days of hosting a guest.

In the future, exchange rate risks cannot be solely imposed on the host either. Online booking platforms must bear exchange rate fluctuations equally.

Accommodation platforms covering at least 3 counties and major digital corporations serving in Hungary must maintain Hungarian-language customer service and respond to complaints within 30 days. Such a response must be in good faith.

The law prohibits the use of unfair contractual terms against hosts.

The proposed law allows hosts the right to appeal to Hungarian administrative authorities in case of disputes.

The new proposed law in Hungary addresses an old, serious problem and an end to fake, malicious reviews and defamation!

If approved, the law states that the accommodation platform is responsible for the content of reviews written by guests. Hosts have long faced issues where, in certain contentious cases, revenge comments and negative reviews are generated that are blatantly untrue, do not reflect reality, and demonstrably contain false and malicious content.

Also noteworthy is the elimination of price parity. The law states that hosts can sell their rooms at any price, potentially cheaper for those booking directly, regardless of the advertised rate on the booking platform.

Additionally, a crucial point states that the general terms and conditions (GTC) becoming an integral part of the contract will render unfair contractual terms null and void.

Therefore, what happened earlier this summer, where Booking signed an agreement with all its partners allowing them to delay payments essentially indefinitely, becomes unlawful from the enactment of this law onwards.