China’s market regulator fined and confiscated a total of 5.2 billion yuan, or approximately $770 million, from Trip.com Group after determining that the company had abused its dominant position in the country’s online hotel booking market, according to Reuters.
The State Administration for Market Regulation seized 1.66 billion yuan in illegal profits and imposed an additional fine of 3.52 billion yuan.
According to the agency, Trip.com utilized traffic distribution systems, platform rules, and technical measures to enter into exclusive agreements with numerous hotel operators.
The aim of these arrangements was to secure the platform’s access to the lowest room rates among all online booking services.
Regulators found that this practice restricted hotels’ ability to list rooms on competing platforms and set their own prices. The agency stated that this harmed competition among travel booking services and reduced consumer choice.
Additionally, Trip.com was ordered to refund 122 million yuan in booking deposits that authorities deemed had been improperly withheld from hotel operators.
The company accepted the regulator’s decision and stated that it would implement all necessary corrective measures. Trip.com pledged to comply with the regulatory directives and review its business practices.
Trip.com is China’s largest online travel platform and operates several major booking brands, including Ctrip, Skyscanner, and Qunar. Its services encompass hotels, airline tickets, travel packages, and corporate travel.
The fine followed an antitrust investigation launched in January after complaints that the company imposed unfair conditions on hotel operators and interfered with pricing.
In recent years, China has intensified its oversight of major internet platforms, with a focus on practices such as exclusive agreements, algorithmic pricing, and restrictions imposed on sellers.
The latest actions by authorities are also part of Beijing’s efforts to curb excessive price competition. Officials argue that aggressive price cuts and sales below cost can undermine businesses, squeeze supplier margins, and intensify deflationary pressure on the economy.
This case may prompt competing travel platforms to reassess their agreements with hotels and provide greater pricing freedom for accommodation providers operating through multiple booking services.
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