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About the Author
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Liam Gill is a former venture-backed founder and lawyer. After earning his Master of Science, studying Venture Capital Investor Psychology, he has spent the last few years helping startups raise millions, including raising pre-product, pre-traction and pre-team. |
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Spain's competition authority, CNMC, has fined Booking.com €413.24 million ($447 million) for abusing its dominant market position over the past five years. The investigation, initiated in October 2022 after complaints from the Spanish Association of Hotel Managers and the Regional Hotel Association of Madrid, revealed unfair terms imposed on hotels and restrictions on rival travel agencies. Holding a market share between 70% and 90%, Booking.com enforced a price parity clause preventing hotels from offering lower prices on their own websites, unilaterally reduced prices, and imposed unfavorable legal terms. The authority also criticized the lack of transparency in Booking's subscription products and ranking criteria, which pressured hotels to concentrate bookings on its platform. The fine includes two penalties of €206.62 million each for unfair terms and competition restriction, alongside obligations to cease these practices. Booking.com can appeal the decision within two months. This sanction coincides with upcoming EU regulations under the Digital Markets Act, requiring compliance by mid-November, with potential penalties of up to 20% of global annual turnover for non-compliance.
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What do clients have to say?
"Liam is a force multiplier for your fundraising efforts and will change the way you see the game." - Yehong Zhu, Founder & CEO @ Zette ($1.7M Raised)
"Liam has positively impacted the trajectory of my business. Personally, learning the art of persuasion and storytelling has improved my success rate." - Jimi Daodu, Founder & CEO @ Vault Hill ($2.1M Raised)
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Practical Information - Digital Markets Act
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The Digital Markets Act (DMA) is a groundbreaking European Union regulation aimed at ensuring fair competition in the digital marketplace by targeting large online platforms, known as "gatekeepers." Key points tech startup founders should know include: the DMA imposes obligations on gatekeepers to prevent anti-competitive practices, such as self-preferencing and pre-installation of proprietary apps, and mandates interoperability and data-sharing to foster innovation and competition. Non-compliance can result in hefty fines of up to 10% of the gatekeeper's global annual revenue. For tech startups, the DMA provides an opportunity for a more level playing field, potentially easing market entry and fostering greater competition and innovation in the digital space.
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In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more.
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This newsletter (or any other content provided by Law4Startups) is not legal, financial, or tax advice. We are simply providing legal information and collating news from around the world. We recommend that you consult an attorney before making any legal decisions. We do not make any representations and take no responsibility for the actions you take based upon this information.
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