China’s market regulator has opened an investigation into Trip.com (9961.HK), the country’s largest online travel agency, over suspected monopolistic practices, reflecting Beijing’s intensified efforts to curb unfair competition in digital markets. (Reuters)
The State Administration for Market Regulation (SAMR) said the inquiry targets Trip.com for alleged abuse of its dominant market position, though the authority did not provide specific details of the allegations. The investigation is based on preliminary reviews under China’s anti-monopoly law, which allows fines ranging from 1% to 10% of a company’s previous year’s annual sales if a violation is confirmed.
In response, Trip.com said it is actively cooperating with the authorities and will fully comply with regulatory requirements. The company reported a 16% year-on-year increase in third-quarter net revenue, with accommodation reservation revenue rising 18% compared with the same period in 2024, according to its most recent financial report.
The investigation follows complaints from an industry association for homestays in Yunnan province, which in December reported multiple instances of online travel agencies, including Trip.com, allegedly imposing coercive contract clauses, arbitrary commission increases, and blocking of internet traffic. The association said it had launched an anti-monopoly campaign in response.
China has previously pursued high-profile antitrust actions against major technology companies. In 2021, Alibaba (9988.HK) was fined 18 billion yuan ($2.58 billion) after authorities determined the e-commerce giant had abused its dominant position for several years. More recently, the government has intensified enforcement against excessive price competition, which has negatively affected businesses and contributed to deflationary pressures.
The Trip.com investigation underscores Beijing’s continued vigilance over digital platforms and its efforts to maintain a competitive market environment, particularly in sectors with significant market concentration.