Trip.com Accepts $765 Million Antitrust Penalty as China Concludes Monopoly Investigation

According to Yahoo Finance, citing reporting by the Associated Press, Trip.com said it “sincerely accepts” the decision issued by China’s State Administration for Market Regulation (SAMR) and pledged to fully implement all required corrective measures following the regulator’s findings of monopolistic conduct.

The regulator announced penalties totaling approximately 5.2 billion yuan (about $765 million). The package includes the confiscation of more than 1.6 billion yuan in what authorities described as illegal gains, a separate 3.5 billion yuan fine, and an order requiring the company to refund roughly 122 million yuan that had been withheld from hotel operators.

The case centered on allegations that Trip.com abused its dominant position in China’s online hotel booking market over several years. SAMR concludedthat, beginning in 2020, the company used exclusive agreements, platform rules, traffic allocation systems and technical measures to limit competition among hotel booking platforms.

According to the regulator, Trip.com required certain hotels to avoid working with competing booking services while encouraging others operating across multiple platforms to provide the lowest available room prices on Trip.com’s platform. Authorities said those practices reduced hotels’ ability to determine their own pricing strategies, restricted cross-platform competition and ultimately harmed consumer interests.

Related: China Fines Trip.com US$765 Million in Major Antitrust Enforcement Action

Trip.com responded by stating that it would carry out every required corrective action and strengthen its compliance efforts. The company said it would systematically implement the regulator’s rectification measures and ensure they are fully executed.

The decision follows an antitrust investigation that SAMR formally opened in January after allegations that the company had abused its market dominance in China’s online travel sector. At the time, regulators disclosed few details beyond saying they were examining potential monopolistic conduct. Trip.com said it would cooperate with the investigation.

The enforcement action reflects China’s continuing application of its Anti-Monopoly Law against dominant digital platforms. In recent years, Chinese authorities have increased scrutiny of large technology companies over practices including exclusive dealing arrangements, restrictions placed on merchants, pricing requirements and other conduct that regulators believe can reduce competition or strengthen market concentration.

Competition authorities argued that Trip.com’s conduct distorted competition within China’s online accommodation booking market by limiting hotels’ ability to distribute inventory across rival platforms. Such restrictions, according to SAMR, reduced competitive pressure among travel platforms while limiting pricing flexibility for hotel operators.

Trip.com operates several major travel brands, including Ctrip, Trip.com, Qunar, and Skyscanner, making it one of the world’s largest online travel companies and the dominant player in China’s online travel booking market. The company’s scale has long made it a focal point for regulators examining competition in China’s digital economy.

The investigation has now concluded with the company’s formal acceptance of the sanctions. Chinese regulators have ordered Trip.com to complete the required refunds, pay the financial penalties and implement the mandated compliance and rectification measures designed to address the anti-competitive practices identified during the investigation. Trip.com has stated that it will comply with the decision and carry out the required reforms.

Source:  Yahoo Finance