Online travel company Booking Holdings has reported a significant financial impact from an investigation by the United States Federal Trade Commission involving hotel advertising practices connected to its Priceline platform.

The company recorded a $900 million reduction in revenue and accrued an additional $100 million loss related to the regulatory matter. The development contributed to a decline in its third-quarter revenue compared with the previous year.

The FTC investigation concerns Priceline’s relationship with Guest Reservations, a third-party website that allegedly used practices capable of misleading consumers seeking hotel bookings. The investigation includes questions about advertising, business impersonation and the disclosure of fees.

Booking Holdings warned that the matter remains unresolved and could result in additional financial penalties. The company also indicated that litigation remains a possibility as discussions with regulators continue.

Despite the regulatory pressure, Booking Holdings reported third-quarter earnings per share of $4.66, exceeding analysts’ expectations of $4.50. The case highlights the growing regulatory scrutiny facing online travel platforms over advertising transparency and consumer protection.