What is Trip.com being investigated for in China?

Trip.com is under investigation by China's market regulator for alleged monopolistic practices and abuse of its dominant market position.

Why did China launch an investigation into Trip.com?

The investigation was initiated due to suspected unfair competition and complaints from travel businesses about monopolistic behaviors by online travel agencies.

What are the potential consequences for Trip.com?

Trip.com could face significant fines, potentially between 1% and 10% of its previous year's sales, if found to have violated China's anti-monopoly law.

Home / Business and Economy / China Probes Travel Giant Trip.com for Monopoly

China Probes Travel Giant Trip.com for Monopoly

14 Jan

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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 Probes Travel Giant Trip.com for Monopoly

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.