When the European Union introduced the Digital Markets Act (DMA), it was supposed to revolutionize the digital economy, it promised fairness but delivered chaos.

Designed to curb the unchecked dominance of “gatekeeper” platforms like Booking and Google, it aimed to empower small businesses and give consumers more choices.

Yet, this legislative sledgehammer has missed its mark. Instead of fostering competition, the DMA is solidifying the power of Online Travel Agents (OTAs) and stripping independent hotels and travelers of their autonomy.

Google’s DMA forced Experiment | A Recipe for Disaster

Google’s recent test in Germany, spurred by the DMA, exemplifies the law’s detrimental unintended consequences. The search engine giant is experimenting with removing its interactive map and free booking links from hotel searches, reverting to a traditional “ten blue links” format.

On the surface, this might appear as a move towards neutrality, but the implications are catastrophic for hotels and travelers alike.

The interactive map and free booking links were invaluable tools for independent hotels to showcase their offerings without being buried under OTA advertising dollars.

Without these features, small hotels lose visibility, while OTAs—flush with cash—dominate the traditional link-based search results through paid ads.

The Five Key Negative Impacts for Travelers and Hotels

Loss of Visibility for Independent Hotels

Hotels that despite other mechanisms also relied on Google’s free booking links to compete with OTAs are now pushed further down in search rankings. This forces them into deeper reliance on OTAs, which demand high commissions and strip away their profit margins, already distressed.

Higher Costs for Travelers

With OTAs dominating search results, travelers face artificially inflated room rates. OTAs’ hefty commissions (15-18% of the gross booking value) and other costs such as Genius (10–30% paid 100% by the Hotels), preferred supplier (3%) and cost of payments are passed directly onto consumers, hidden in the price of bookings. Since the rate parity is no longer existing, Hotels simply parse the cost of OTA bookings towards the traveler to restore their economic sustainability.

Limited Choice and Transparency

Removing features like Google’s map and hotel reduces the ability of travelers to compare options directly. Instead, they’re funneled into OTA-controlled environments, where results are often tailored to maximize OTA profit rather than traveler value.

Economic Strangulation of Independent Hotels

Independent hotels lose their direct booking channels, which are critical for maintaining profitability and establishing customer loyalty. The OTA-driven model erodes their ability to compete, particularly against chain hotels with larger marketing budgets.

Devaluation of Local and Unique Hospitality

OTAs prioritize profit over experience, pushing standard options and marginalizing smaller, unique properties that define local culture and charm. This homogenization hurts not only hotels but also the travelers seeking authentic experiences.

Who Really Wins? The OTAs’ Quiet Victory

By enforcing sweeping changes without understanding their practical implications, the EU has handed OTAs an unintended advantage. Companies like Booking and other OTA have used the regulatory chaos to tighten their grip on the market. Without Google’s map and hotel feature and the visibility it provided, independent hotels are left with little choice but to pay steep commissions to maintain their presence online and invest in their own perfected digital presence to remain relevant.

The Call to Action - Fix the DMA Before It’s Too Late

Organizations like IHA, Dehoga, DRV, BTW, Denkfabrik Zukunft Gastwelt must step up to the plate and demand revisions to the DMA. The legislation needs urgent recalibration to ensure it aligns with its original intent:

Restore Visibility for Direct Channels - Google’s map and free hotel booking links should be preserved, ensuring fair competition in search results.

Enforce OTA Accountability - Strict anti-retaliation measures are necessary to prevent OTAs from punishing hotels that offer better rates or conditions on their own websites.

Protect Consumer Interests - Regulations must prioritize tools that empower travelers to compare options transparently and book directly with confidence.

Balance the Playing Field - Hotels, especially independents, must be supported with resources and incentives to compete in a landscape dominated by well-funded OTAs.

Ensure True Neutrality - DMA enforcement should be monitored by independent bodies to prevent manipulation by corporate lobbyists.

The Digital Markets Act promised fairness but delivered chaos.

It’s time to revisit and refine this legislation before it permanently undermines Europe’s hospitality ecosystem.

If left uncorrected, the DMA as a one size fits all regulation that doesn’t really do what it was intended for will go down in history as a law crafted with noble intentions but executed so poorly that it crushed the very competition it sought to protect.

The ball is now in the EU’s court and the clock is ticking.

What is your opinion on the DMA and how has this already affected your business?

Thomas Müller - for Hotels and Destinations - Follow
Empowering Hotels and Destinations | Boosting Visibility, Reach, Direct Bookings, Reputation and Economic Sustainability | Digital Transformation Expert | Keynote Speaker | Thought Leader.