The European Court of Justice ruled on Thursday that it is unnecessary for Booking.com, a travel price comparison website owned by Booking Holdings (BKNG.US), to prevent hotels from offering lower room rates on their own websites or competitor websites, and it may reduce competition, but it does not violate EU antitrust laws.

This practice is the preferential terms between online booking websites and hotel establishments, which has sparked complaints from competitors and scrutiny from European regulatory institutions, concerned about reducing consumer choice.

The German antitrust regulatory authority has prohibited such terms. EU judges stated that restricting or reducing competition among various hotel booking platforms forces small platforms and new entrants to exit, with seemingly no need to ensure the economic survival of Booking.com.