The State Administration for Market Regulation said Trip. com had used exclusive arrangements, preferential traffic allocation and price-control requirements to strengthen its position in the online accommodation market. The practices affected hotels operating on rival platforms and limited their freedom to set room rates independently.
The total penalty includes the confiscation of about 1.66 billion yuan in illegal gains and a fine of roughly 3.52 billion yuan. Trip. com was also ordered to return about 122 million yuan that had been withheld from hotel operators, taking the financial impact of the enforcement action beyond the headline antitrust fine.
The regulator concluded that Trip. com had engaged in abusive conduct from at least 2020. The company allegedly required some hotels to avoid working with competing booking platforms or to restrict the inventory offered through rival services.
Hotels listed on several websites were also pressed to ensure that Trip. com received the lowest available room prices. Such requirements, commonly known as price-parity clauses, can prevent accommodation providers from offering discounts through their own websites or smaller travel platforms.
The investigation also examined the use of online traffic as a commercial lever. Hotels accepting Trip. com’s preferred terms could receive greater visibility in search results, while properties resisting pricing or exclusivity demands risked losing access to customers.
Regulators said the practices eliminated or restricted competition, constrained hotels’ ability to conduct business across platforms and interfered with their right to determine prices. They also found that the measures harmed consumer interests by weakening competition between booking providers.
Trip. com accepted the decision and said it would comply with the penalties. The group pledged to introduce corrective measures across its operations and ensure that each requirement imposed by the regulator was fully implemented.
The ruling follows an investigation opened in January after preliminary checks identified possible violations of China’s Anti-Monopoly Law. Trip. com said at the time that it was cooperating with the authorities and that its business continued to operate normally.
The company’s shares fell sharply when the investigation was announced, reflecting concern that a substantial fine could affect earnings and force changes to its commercial relationships with hotels. The group’s US-listed shares recorded their steepest one-day decline in more than seven years, while its Hong Kong-listed stock also dropped.
Trip. com operates a network of international and domestic travel brands, including Ctrip, Qunar, Trip. com and flight-search platform Skyscanner. Its services cover accommodation, airline tickets, package tours, corporate travel and other bookings.
The platform has benefited from the recovery in tourism and increased demand from travellers seeking overseas destinations. Its scale, data resources and large customer base have also given it considerable influence over hotels seeking access to China’s expanding travel market.
The regulator’s decision could alter how Trip. com negotiates commissions, pricing arrangements and promotional agreements with accommodation providers. Hotels may gain greater freedom to offer lower prices through competing services or direct-booking channels without risking reduced visibility on Trip. com.
Smaller travel platforms may also benefit if exclusivity restrictions are removed. Greater access to hotel inventory and more flexible pricing could allow rival operators to compete more effectively, particularly in regional markets and lower-priced accommodation segments.
The enforcement action is among the largest penalties imposed on a technology platform under China’s competition rules. Alibaba was fined 18.23 billion yuan in 2021 after regulators found that it had forced merchants to choose between its marketplace and competing platforms.
China has since expanded oversight of digital businesses whose platforms connect large numbers of consumers and merchants. Authorities have targeted practices including forced exclusivity, discriminatory pricing, excessive commissions, algorithmic manipulation and the unfair allocation of online traffic.
The Trip. com case also reflects growing scrutiny of online travel agencies worldwide. Hotels have long argued that dominant booking platforms can dictate commissions, control customer relationships and limit the prices available through direct sales channels.
Price-parity clauses have faced restrictions in several markets because they can reduce incentives for hotels and competing platforms to offer cheaper rates. Booking companies argue that the provisions protect platforms from hotels using their marketing reach to attract customers before completing transactions elsewhere.
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