ROME, March 22 (Reuters) - Italy's competition watchdog

said on Friday it has opened a probe into Booking.com

to establish whether the travel website is abusing its dominant

market position.

The watchdog, AGCM, said that the website's handling of

hotels that are part of Booking.com's Preferred Partner

Programme "seems likely to hinder effective competition in the

market, at least nationwide, for online hotel brokerage and

reservation services".

This strategy is "to the detriment of other online travel

agents with negative effects on accommodation facilities and,

ultimately, on consumers in terms of higher prices and less

choice," the authority said in a statement.

It added that Italian tax police Guardia di Finanza had

carried out searches at Booking.com's Italian offices.

"We are fully cooperating with the Guardia di Finanza and

the Italian competition authority who visited our offices in

Italy yesterday," a Booking.com spokesperson said.