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China Opens Antitrust Investigation Into Trip.com Over Suspected Market Abuse

The case tests competition rules that allow fines of 1% to 10% of a company’s prior-year sales.

Overview

  • The State Administration for Market Regulation said it launched a probe on Jan. 14, citing suspicion that Trip.com abused a dominant market position without detailing specific allegations.
  • Trip.com confirmed receipt of the formal notice, said it will cooperate with regulators, and reported that its services and daily operations remain normal.
  • The regulator’s action follows a December statement from a Yunnan homestay association reporting complaints of coercive clauses, commission hikes, and traffic blocking by online travel agencies including Trip.com.
  • Trip.com’s U.S.-listed shares fell about 16% in premarket trading after the investigation was disclosed, according to Benzinga data.
  • The inquiry fits into China’s ongoing antitrust enforcement against large platforms, with Alibaba’s 2021 penalty cited as a key precedent.