China’s market regulator said on Wednesday that it had launched an investigation into online travel company Trip.com over alleged monopolistic practices, as Beijing steps up its crackdown on suspected unfair competition.
Trip.com is suspected of abusing its dominant market position, the State Administration for Market Regulation said in its statement, without elaborating on the allegations. The investigation is based on preliminary reviews and the anti-monopoly law, it said.
Under China’s anti-monopoly law, companies can face fines of between 1% and 10% of their annual sales from the previous year if found to have breached its provisions.
Trip.com said in a statement that it was “actively” cooperating with the investigation and would “fully implement regulatory requirements”.
The online travel service provider recorded a 16% year-on-year surge in third-quarter net revenue, with accommodation reservation revenue increasing 18% from the same period in 2024, its most recent financial report showed.
In December, an industry association for homestays in southwestern China’s Yunnan province said it had received multiple complaints from member businesses that some online travel agencies, such as Trip.com, abused their dominant market positions to carry out unfair practices.
The practices include coercive clauses, arbitrary commission hikes and blocking internet traffic, the association’s statement said. The association had started an anti-monopoly campaign, it added.
Chinese authorities have in the past targeted multiple big tech companies to curb what they see as unfair competition that distorts the market environment.
In 2021, it slapped a record 18 billion yuan ($2.58 billion) fine on Alibaba 9988.HK after an anti-monopoly probe found the e-commerce giant had abused its dominant market position for several years.
More recently, the government has been cracking down on excessive price competition, which has bruised businesses and contributed to deflationary pressures.
Reuters
