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China Opens Antitrust Probe into Trip.com Over Suspected Market Abuse

A finding of violations could bring fines of 1% to 10% of the company’s prior-year sales.

Overview

  • China’s State Administration for Market Regulation notified Trip.com that it has begun an investigation under the Anti-Monopoly Law.
  • The regulator said the company is suspected of abusing a dominant market position, without detailing specific allegations.
  • Trip.com said it will cooperate with the inquiry and reported that business operations remain normal.
  • Trip.com’s shares fell about 16% in U.S. trading following the announcement.
  • Prior complaints from a Yunnan homestay industry group alleged coercive contract terms, commission hikes and traffic blocking by major online travel agencies, including Trip.com.