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China fines Trip.com $765 million for monopoly abuses

Created at 25 Jul · 8:15 AM1 source↑ Market-relevant
IN SHORT

China's State Administration for Market Regulation has fined Trip.com Group, the operator of Ctrip and Skyscanner, nearly 5.2 billion yuan ($765 million) for monopolistic conduct. The online travel giant allegedly forced hotels into exclusive deals and lowest-rate pledges, restricting competition and harming consumers.

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Key Numbers

5.2 billion yuantotal penalty imposed on Trip.com
$765 milliontotal penalty imposed on Trip.com
1.6 billion yuanillegal gains confiscated from Trip.com
$245 millionillegal gains confiscated from Trip.com
3.5 billion yuanfine imposed on Trip.com
$520 millionfine imposed on Trip.com
122 million yuanrefund to hotel operators
$18 millionrefund to hotel operators
2020year Trip.com's conduct began

Who's Involved

Trip.com Group
operator of China's largest online travel platform, fined for monopoly abuses
China's State Administration for Market Regulation
regulator that imposed penalties on Trip.com

↳ Why This Matters

The significant fine against Trip.com underscores China's ongoing efforts to curb monopolistic practices among its major tech companies, impacting the competitive landscape for online travel services and potentially influencing how platforms interact with their partners.

Key facts

  • China has fined Trip.com Group $765 million for monopolistic conduct.
  • The company allegedly forced hotels into exclusive deals and lowest-rate pledges.
  • Regulators stated Trip.com's actions restricted competition and harmed consumers.
  • Trip.com acknowledged the decision and will comply with the penalties.

China's State Administration for Market Regulation announced on Saturday that it has imposed penalties totaling nearly 5.2 billion yuan ($765 million) on Trip.com Group for monopolistic conduct. The online travel giant, which operates Ctrip and Skyscanner, is accused of abusing its dominant market position since 2020.

According to the regulator, Trip.com engaged in practices such as forcing partner hotels into exclusive agreements and demanding they offer the lowest rates on its platform. This behavior allegedly restricted market competition, limited consumer choice, and infringed upon hotels' pricing autonomy.

The penalties include the confiscation of over 1.6 billion yuan ($245 million) in illegal gains and a fine of more than 3.5 billion yuan ($520 million). Trip.com has also been ordered to refund approximately 122 million yuan ($18 million) that it had withheld from hotel operators.

Trip.com acknowledged the decision, stating that it "sincerely accepts and will resolutely comply" with the penalties and will implement the required rectification measures.

Frequently asked questions

Trip.com allegedly forced hotels into exclusive partnerships, demanded lowest-rate pledges, and restricted hotels from working with competing platforms.

The total penalties amounted to nearly 5.2 billion yuan, which is approximately $765 million.

Trip.com accepted the decision and stated it will resolutely comply with the penalties and implement the required rectification measures.

What Happens Next

01Trip.com will implement rectification measures as required by the regulator.

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Cadence

How It Developed

China's State Administration for Market Regulation launched an investigation into Trip.com in January.
Regulators found Trip.com abused its dominant market position since 2020.
Trip.com allegedly forced hotels into exclusive partnerships and lowest-rate pledges.
The company restricted competition by limiting hotel operators' ability to work with rivals.
Trip.com was fined over 3.5 billion yuan ($520 million) and had 1.6 billion yuan ($245 million) in illegal gains confiscated.
The company was also ordered to refund 122 million yuan ($18 million) withheld from hotel operators.
Trip.com accepted the penalties and pledged to comply with rectification measures.
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Sources

T1
China hits Trip.com with $765m in penalties, claiming monopoly abuseNikkei Asia

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