Italy's competition watchdog has launched an investigation into Booking.com over its commercial practices, specifically targeting the company's preferred partner program. The online travel giant stands accused of potentially misleading users by suggesting that accommodation providers who pay higher fees for better visibility offer superior value compared to others.

Booking Holdings' subsidiary operates a program that grants accommodation providers enhanced search result placement and a special thumbs-up seal in exchange for increased commission payments. The Italian authorities are examining whether this practice creates unfair advantages and distorts consumer perception of value. Booking.com did not immediately respond to requests for comment on the investigation.

The probe adds to growing regulatory scrutiny of major online travel platforms across Europe. Similar investigations have targeted Booking.com in other jurisdictions over concerns about market dominance and fair competition practices. The outcome could have significant implications for the company's business model and the broader online travel industry.