China Launches Monopoly Probe Into Travel Giant Trip.com
Chinese market regulators have officially opened an investigation into Trip.com Group. Authorities suspect the travel service provider of violating competition laws through monopoly practices.
Regulator Confirms Investigation
The State Administration for Market Regulation (SAMR) announced the probe this week. Officials stated they are examining whether Trip.com misused its dominant market position. This potential violation falls under China's Anti-Monopoly Law.
Regulators began the investigation after completing preliminary checks. They have not yet disclosed specific details about the allegations or timeline for completion.
Trip.com's Response and Operations
Trip.com responded quickly to the announcement. The company posted a statement on its WeChat account confirming cooperation with authorities.
"We will actively cooperate with the investigation," the company stated. "Our operations continue normally as we work to implement all regulatory requirements."
The travel platform emphasized its commitment to sustainable market development. Trip.com promised to collaborate with industry partners to maintain fair competition.
Background of Complaints
The investigation follows mounting complaints from industry groups. A vacation rental association in Yunnan province reported numerous grievances against online travel companies.
Members alleged several problematic practices by dominant platforms like Trip.com:
- Forcing businesses to accept coercive contract terms
- Implementing arbitrary commission increases
- Blocking internet traffic to competing services
The business group stated it had begun challenging these monopoly behaviors before the official investigation.
Financial Stakes and Legal Framework
China's competition law carries significant financial penalties for violations. Companies found guilty of monopoly practices face fines ranging from 1% to 10% of their previous year's revenue.
Trip.com recently reported strong financial performance. The company's earnings grew 16% year-over-year, with hotel booking revenue increasing 18% in 2024.
Broader Regulatory Context
This investigation continues China's ongoing crackdown on large technology companies. Beijing has targeted several internet giants in recent years for anti-competitive behavior.
In 2021, authorities fined Alibaba approximately 18 billion yuan ($2.58 billion). Regulators determined the e-commerce giant had abused its market dominance over several years.
More recently, Chinese officials have also intervened to prevent excessive price cutting. These measures aim to protect businesses from destructive competition that could harm the broader economy.
Trip.com operates one of China's largest travel platforms. The company provides booking services for trains, flights, and hotels both domestically and internationally.
