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China Probes Travel Giant Trip.com for Monopoly
14 Jan
Summary
- China's market regulator launched an investigation into Trip.com.
- Trip.com is suspected of abusing its dominant market position.
- The probe follows complaints of unfair practices from travel businesses.
China's State Administration for Market Regulation announced on Wednesday that it has launched an investigation into the online travel company Trip.com. The probe centers on allegations of monopolistic practices and the abuse of a dominant market position, following a broader trend of increased regulatory scrutiny on major tech firms.
The investigation into Trip.com was prompted by preliminary reviews and complaints from industry associations. These complaints highlighted issues such as coercive clauses, arbitrary commission hikes, and the blocking of internet traffic by online travel agencies, including Trip.com. If found guilty, the company could face substantial fines.
Trip.com has publicly stated its commitment to cooperating with the investigation and adhering to regulatory requirements. This development occurs within the context of China's ongoing efforts to curb unfair competition and excessive price wars that have impacted businesses and contributed to deflationary pressures.
