Booking Takes $1 Billion Hit Over Possible FTC Settlement

Booking Holdings faced a substantial financial adjustment in the third quarter, registering a $900 million revenue reduction and a $100 million accrued loss. These accounting entries are tied directly to an anticipated complaint from the U.S. Federal Trade Commission (FTC) regarding its Priceline brand.

In a quarterly regulatory filing, the company revealed that the FTC might seek restitution, litigation expenses, and financial penalties exceeding $1 billion. Although formal settlement terms have not been finalized, Priceline is actively engaged in discussions with the regulatory body to resolve the looming complaint.

Stock photo for illustration only, not from the actual event

Operationally during the quarter, Booking Holdings reported that net income fell 1% down to $2.7 billion on total revenue of $8.9 billion, which also decreased by 1%. Despite top-line and bottom-line dips, total room nights experienced a 7% year-over-year increase, picking up pace from the 5% growth recorded in the second quarter.

"Priceline is in discussions with the FTC to seek to resolve a potential complaint from the FTC."

Booking Holdings

This FTC scrutiny builds on disclosures made during the second quarter when the agency first indicated plans to file a complaint against Priceline and a B2B affiliate partner over fee disclosures, customer support policies, and billing practices—identified by Reuters as Guest Reservations. Concurrently, Booking.com continues to navigate intense European Commission oversight regarding its efforts to eliminate fraudulent listings and phishing activities.