Tax evasion, unfair competition reasons behind Turkish court's booking.com ruling
Following the Turkish court's ruling for the suspension of booking.com's activities in the country on Wednesday, the Turkish Travel Agencies Association (TURSAB) said in a statement that justice was served in the ruling as the website had created unfair competition and did not pay taxes in Turkey, despite operating in the country.
- Türkiye
- Published Date: 12:00 | 31 March 2017
- Modified Date: 01:23 | 31 March 2017
With regards to the court's verdict to restrict access to booking.com from Turkey, TURSAB Chairman Başaran Ulusoy explained that the site was misleading customers, creating unfair competition and constantly raising commissions.
"We were expecting this decision, and we think that justice has been served. We were right in our case," Ulusoy said. "They do not pay taxes, but we do. They were constantly raising commissions and putting pressure on the hotels, and we were unable to find a room. The Competition Authority has imposed a penalty of TL 2.5 million ($690,000)."
Ulusoy also said that booking.com has the right to appeal the decision and explained how people will be affected by the application. Pointing out that the decision is related to booking.com's activities in Turkey, Ulusoy said that after the site closes, Turkish customers will be unable to book Turkish and international hotels via booking.com, and will have to arrange their trips via travel agencies. However, those coming from abroad will still be able to make reservations in Turkey using the website.
Speaking to Dünya daily, the general manager of tatilsepeti.com, a Turkish website selling holiday packages and providing booking services, Koray Küçükyılmaz, said the ruling would not have significant consequences for Turkish citizens.
Küçükyılmaz stressed that booking.com is a globally operated company and has loyal customers. He drew attention to the fact that despite the company's operation in Turkey, the invoices are sent to the Netherlands.
Following the ruling of the Turkish court for the suspension of booking.com's activities in the country on Wednesday after the TURSAB filed a lawsuit over unfair competition, the travel website froze all booking processes for facilities in Turkey.
As of yesterday morning, booking.com users who entered the website from Turkey have not been able to make reservations or search for Turkish facilities. However, the site does allows bookings for tourism facilities abroad.
As a result of TÜRSAB's previous application to the Competition Authority, booking.com was given an administrative penalty of TL 2.5 million by the Competition Authority due to its anti-competitive practices.
The access barrier to be implemented against booking.com by the Information and Communication Technologies Authority (BTK) is expected to be put into effect after the notification of the court order.
The BTK officials stated that restricting the access to websites due to unfair competition has never been implemented in the country before.
"We have never encountered an access barrier decision based on unfair competition. Therefore, we have never implemented such a decision," the BTK officials said. "However, if there is such a decision is made by the court, we will have to implement it."
Meanwhile, booking.com released a statement and stated that the company is offering Turkish customers accommodation and booking opportunities worldwide at comparable prices and that it aids in the operation of 13,000 Turkish businesses. The statement also read that the company will appeal the court ruling.
"We were expecting this decision, and we think that justice has been served. We were right in our case," Ulusoy said. "They do not pay taxes, but we do. They were constantly raising commissions and putting pressure on the hotels, and we were unable to find a room. The Competition Authority has imposed a penalty of TL 2.5 million ($690,000)."
Ulusoy also said that booking.com has the right to appeal the decision and explained how people will be affected by the application. Pointing out that the decision is related to booking.com's activities in Turkey, Ulusoy said that after the site closes, Turkish customers will be unable to book Turkish and international hotels via booking.com, and will have to arrange their trips via travel agencies. However, those coming from abroad will still be able to make reservations in Turkey using the website.
Speaking to Dünya daily, the general manager of tatilsepeti.com, a Turkish website selling holiday packages and providing booking services, Koray Küçükyılmaz, said the ruling would not have significant consequences for Turkish citizens.
Küçükyılmaz stressed that booking.com is a globally operated company and has loyal customers. He drew attention to the fact that despite the company's operation in Turkey, the invoices are sent to the Netherlands.
Following the ruling of the Turkish court for the suspension of booking.com's activities in the country on Wednesday after the TURSAB filed a lawsuit over unfair competition, the travel website froze all booking processes for facilities in Turkey.
As of yesterday morning, booking.com users who entered the website from Turkey have not been able to make reservations or search for Turkish facilities. However, the site does allows bookings for tourism facilities abroad.
As a result of TÜRSAB's previous application to the Competition Authority, booking.com was given an administrative penalty of TL 2.5 million by the Competition Authority due to its anti-competitive practices.
The access barrier to be implemented against booking.com by the Information and Communication Technologies Authority (BTK) is expected to be put into effect after the notification of the court order.
The BTK officials stated that restricting the access to websites due to unfair competition has never been implemented in the country before.
"We have never encountered an access barrier decision based on unfair competition. Therefore, we have never implemented such a decision," the BTK officials said. "However, if there is such a decision is made by the court, we will have to implement it."
Meanwhile, booking.com released a statement and stated that the company is offering Turkish customers accommodation and booking opportunities worldwide at comparable prices and that it aids in the operation of 13,000 Turkish businesses. The statement also read that the company will appeal the court ruling.
OTHER TÜRKİYE NEWS