Answer given by Mr Reynders on behalf of the European Commission
27.9.2023
Dynamic pricing is not prohibited by EU consumer protection law. Companies can freely determine the prices they charge as long as they adequately inform consumers about the total price.
However, commercial practices related to dynamic pricing could in some circumstances breach the Unfair Commercial Practices Directive 2005/29/EC[1] e.g., if prices are raised during the booking process after the consumer has proceeded to payment.
The application of the directive in individual cases falls under the remit of national courts and authorities. The Consumer Protection Cooperation network is aware of the concerns in this area and continues monitoring the situation.
While Article 102 Treaty on the Functioning of the European Union (TFEU) applies to various types of pricing abuses, including those that directly exploit consumers, this is only under particular circumstances that have to be assessed case by case.
There is at this stage no precedent in EU competition law regarding so-called ‘dynamic pricing’.
It is, however, well established that Article 102 TFEU prohibits the imposition of excessive prices by a dominant company[2].
Imposing remedial measures on the basis of Article 102 TFEU would require the finding of an infringement and there are, at this stage, no Commission proceedings opened in this regard.
The Commission will continue to monitor practices in the media and entertainment markets, including pricing patterns.
The Commission is conducting a ‘Fitness Check of EU consumer law on digital fairness’ to determine whether consumer law remains adequate for ensuring a high level of consumer protection in the digital environment[3], after which the Commission will decide if and in which areas new measures are necessary.
- [1] As from 28 May 2022, the EU has prohibited the resale of event tickets acquired by traders using automated means to circumvent rules applicable to ticket purchases (Point 23a of the Annex I to Directive 2005/29/EC).
- [2] Case https://competition-cases.ec.europa.eu/cases/AT.40394
- [3] The Fitness Check is set to conclude by mid-2024. The public consultation included a question about the need for more specific information obligations regarding event tickets sold in the secondary market.