07:12 AM EDT, 05/14/2024 (MT Newswires) -- (Updates with company comment in the fourth paragraph.)

Booking Holdings ( BKNG ) has been designated by the European Commission as a gatekeeper under the Digital Markets Act (DMA), the Commission said Monday.

As a result, Booking has six months to submit a detailed compliance report outlining how it complies with each of the DMA's obligations, the Commission said. If Booking does not comply with the obligations, the Commission can impose fines of up to 10% of Booking's total worldwide turnover and up to 20% in the event of repeated infringements, according to the Commission.

The Commission also announced it opted not to designate the ads businesses of X and TikTok as gatekeepers but has opened an investigation to assess whether the DMA should cover the rest of X's services.

Booking said it had anticipated the regulator's decision, adding that it will continue to work with the European Commission as the company develops solutions to comply with the law.