Trip.com parent company Ctrip is reported for market monopoly, Chinese authorities are going to investigate.

Foreign media reports that China’s leading online travel platform, Ctrip Group Co., Ltd. (Trip.com, the parent company ), is facing a major antitrust regulatory challenge. The State Administration for Market Regulation of China recently announced that, following preliminary investigations, they have officially filed a case against Ctrip for suspected abuse of market dominance under the Anti-Monopoly Law of the People’s Republic of China.

Hotel Complaint: Ctrip Alters Prices to Strengthen Platform Competitiveness

According to regulatory authorities, one of the focal points of controversy stems from complaints by several hotel operators last year. The operators pointed out that Ctrip’s platform requires mandatory use of a pricing management tool called “Price Adjustment Assistant,” which allows the platform to intervene directly in the backend and even modify the sales prices of hotel rooms, raising questions about whether this infringes on merchants’ pricing autonomy.

The so-called Price Adjustment Assistant is an automated price monitoring system used to maintain the platform’s price competitiveness. This tool regularly compares the prices of the same hotels across other online travel platforms. If it finds that the hotel prices on Ctrip are higher than competitors, the system will automatically lower the hotel’s base price or require the room to participate in promotional activities, ensuring Ctrip’s pricing advantage.

Ctrip Accused of Market Monopoly, Stock Drops 6.49%

Market research data shows that Ctrip’s dominant position in China’s OTA (Online Travel Agency) market remains quite stable. Brokerage research reports indicate that in 2024, Ctrip’s market share among major OTA platforms is still estimated to be over 56%, making it difficult for other platforms to shake its position in the short term, and drawing regulatory attention to its influence on pricing and traffic distribution.

After the case was made public, the capital markets responded quickly. Ctrip’s Hong Kong-listed stock price was under significant pressure on the same day, with a sharp decline during trading, closing down 6.49% at HKD 569.5 per share, reflecting investors’ high alertness to subsequent regulatory risks and potential penalties.

This article about Ctrip, the parent company of Trip.com, being accused of market monopoly, and Chinese authorities’ investigation, first appeared on Chain News ABMedia.