BEIJING – China’s market regulator has launched an investigation into Trip.com Group Ltd, the country’s largest online travel agency, over suspected monopolistic practices, marking another step in Beijing’s intensified crackdown on alleged unfair competition in the tech sector.

The State Administration for Market Regulation (SAMR) said Trip.com is suspected of abusing its dominant market position, citing preliminary reviews under China’s anti-monopoly law. The regulator did not provide further details on the allegations, but warned that companies found in violation could face fines ranging from 1% to 10% of their previous year’s annual revenue.

Trip.com Responds to Investigation

Trip.com released a statement saying it is actively cooperating with the probe and will “fully implement regulatory requirements.” The company has experienced strong growth in recent quarters; its most recent financial report showed a 16% year-on-year surge in third-quarter net revenue, with accommodation reservation revenue rising 18% compared with the same period in 2024.

Alleged Unfair Practices

The investigation follows complaints from an industry association for homestays in Yunnan province, which cited multiple instances of coercive clauses, arbitrary commission hikes, and internet traffic blocking by Trip.com and similar online travel agencies. The association launched its own anti-monopoly campaign in response to these alleged practices.

Experts note that the probe reflects broader concerns in China about market concentration and unfair practices in the tech and travel sectors, where dominant platforms can influence prices, restrict competitors, and impact smaller businesses.

Context: China’s Tech Antitrust Crackdown

This is not the first time Chinese authorities have targeted major tech firms. In 2021, Alibaba Group Holding Ltd received a record 18 billion yuan ($2.58 billion) fine after an anti-monopoly investigation found the e-commerce giant had abused its dominant position for several years.

More recently, regulators have focused on excessive price competition and other practices that can distort market dynamics and contribute to deflationary pressures. The Trip.com investigation signals that authorities continue to closely monitor online platforms, particularly in sectors where dominant players control significant consumer and supplier access.

Implications for the Online Travel Sector

Analysts say the investigation could have broader implications for China’s online travel and accommodation markets, affecting pricing strategies, commission structures, and competitive practices. Firms operating in the sector may need to review compliance measures and adjust operations to avoid regulatory penalties.

China’s anti-monopoly law serves as a key mechanism to maintain fair competition in the digital economy, safeguard smaller businesses, and prevent market distortions caused by the dominance of large tech firms.