Antitrust Investigation Targets Asia’s Travel Behemoth, Trip.com
China’s State Administration for Market Regulation has initiated a formal antitrust probe into Trip.com Group, the largest online travel platform in Asia. The investigation is centered around allegations of market dominance abuse and monopolistic practices.
The announcement of the probe in mid-January led to a drastic drop in Trip.com’s shares listed in Hong Kong, with a nearly 20% plunge. This marked the worst single-day performance since the company went public in 2021. The shares listed in the U.S. also experienced a significant drop of around 17%.
Trip.com reportedly controls an estimated 56% of China’s accommodation and travel market, as per BOCOM International. This far exceeds its competitors such as Meituan with 13%, Fliggy with 8%, and Douyin with 3%. The probe was triggered by complaints from smaller travel businesses alleging unfair competition practices. These include unilateral commission hikes, imposition of unfair trading conditions, and traffic blocking.
As per China’s Anti-Monopoly Law, companies found guilty of market dominance abuse could face fines ranging from 1% to 10% of their annual revenue. Given that Trip.com reported a revenue of approximately 53.3 billion yuan ($7.65 billion) in 2024, the potential penalties could amount to several hundred million to several billion yuan.
The timing of the probe is noteworthy as it comes just before China’s Spring Festival holidays. During this period, millions of travelers are expected to make between 165-175 million cross-border trips in 2026. Trip.com, which operates brands including Ctrip, Qunar, and Skyscanner, has stated that it will “actively cooperate” with the investigation while maintaining normal business operations.
Source: CNBC