The group said Huston's relationship was not with an employee under his direct supervision, but said he 'acted contrary to the company's Code of Conduct and had engaged in activities inconsistent with the Board's expectations for executive conduct'.
In a statement, the online travel giant said Huston, who is married, acknowledged he had broken the company's code and had 'expressed regret'.
The Canadian has received no severance package and, according to Bloomberg, will forfeit almost $15.3 million in unvested stock equity. However, Priceline has agreed to pay for his move back from his office in Amsterdam to North America.
The company, which owns Booking.com, Kayak, Agoda.com, Rentalcars.com and OpenTable, has appointed former CEO and current chairman Jeffery H. Boyd as interim CEO and president while the Board conducts a search to name a successor.
Boyd has been with Priceline for 16 years and was president and CEO from 2002 to 2013.
The company also announced that current Booking.com president and chief operating officer Gillian Tans has been promoted to CEO, replacing Huston who had also served as CEO of this business unit.
James Guyette, lead independent director, said: "I am satisfied with the Board's thorough review of this issue. The performance of the business under Darren has been strong, and the company is very well-positioned to continue executing on its strategy for growth.
"Jeff is deeply familiar with the company's strategy and leadership team, which consists of highly accomplished entrepreneurs and seasoned professional executives with long-tenure in the business. We are confident the company is in strong hands while we conduct a search for a new CEO."
The company is due to announce its second quarter earnings on May 4, as previously scheduled.
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