ZURICH, May 21 (Reuters) - Switzerland's price watchdog

has ordered Booking.com to lower its prices in the

country, finding that the online travel agency's commission

rates for hotels are "abusively high," the supervisory body said

on Wednesday.

In accordance with the order, Booking.com must reduce its

commission rates for Swiss hotels by almost a quarter, the

watchdog said in a statement.

Booking.com vowed to appeal the decision and said its rates

would not change until the appeal process was resolved.

"We don't agree with a forced reduction in the cost of a

product that is entirely optional," it said in a statement.

The Swiss watchdog said the cost reduction must be

implemented three months after the ruling becomes legally

binding, and would remain in effect for three years.

Earlier this week the Spanish government ordered Airbnb ( ABNB )

to withdraw over 65,000 listings for holiday rentals

which it said violated existing rules from its platform.

The step was part of a broader Spanish crackdown on tourism

rentals via sites such as Airbnb ( ABNB ) and Booking.com, which critics

blame for contributing to a housing crisis in the country.

(Writing by Dave Graham

Additional reporting by Paul Arnold

Editing by Madeline Chambers)