China imposes $765 million antitrust penalty on Trip.com for monopolistic practices

China imposes $765 million antitrust penalty on Trip.com for monopolistic practices

China's State Administration for Market Regulation announced Saturday it has imposed a 5.18 billion yuan ($765 million) penalty on Trip.com Group, the country's largest online travel provider, for violating antitrust regulations through monopolistic business practices.

The penalty follows a January investigation into Trip.com's suspected abuse of its dominant market position. The company controls approximately 48% of China's online hotel booking market, with domestic travel demand accounting for over 80% of its revenue. Trip.com reported full-year 2025 net revenue of 62.4 billion yuan ($8.9 billion), representing a 17% year-over-year increase.

The regulatory action includes confiscation of 1.66 billion yuan in illegal gains and an additional fine of 3.52 billion yuan. Investigators determined that Trip.com engaged in anticompetitive practices by implementing exclusive dealing arrangements with hotels and pressuring operators to abandon competing platforms.

The SAMR stated that these practices excluded or restricted competition in the relevant market, harmed the interests of hotel operators and consumers, and hindered the industry's regulated and healthy development. The company operates across train, flight and hotel bookings both domestically and internationally.

Market impact and regulatory context

When the investigation was announced in January, Trip.com's shares plummeted nearly 22% in Hong Kong, making it the worst performer on the Hang Seng index that day. The penalty comes as China continues its regulatory scrutiny of major technology platforms, following a pattern established with the record 18.2 billion yuan ($2.8 billion) fine imposed on Alibaba in April 2021 for similar monopolistic violations in e-commerce.

Under China's Anti-Monopoly Law, regulators can impose fines up to 10% of a company's annual sales for violations, meaning Trip.com could have faced a significantly higher penalty than the amount imposed. The Trip.com fine represents a substantial portion of China's overall antitrust enforcement activity, particularly considering that SAMR imposed fines totaling just 653 million yuan ($96.4 million) across all 22 concluded monopoly cases in 2025.

The enforcement action targets a rapidly growing sector. China's online travel market is valued at approximately $120.98 billion in 2026 and is projected to reach $244.14 billion by 2031, with Trip.com Group, Meituan, Tongcheng Travel, and Fliggy controlling the majority of online room nights.

Company response and future outlook

In a WeChat statement, Trip.com said it sincerely accepts the regulator's findings and will use the penalty as an opportunity for deep reflection and self-transformation. The company pledged to resolutely abandon inefficient, cutthroat competition.

The regulatory action comes as Trip.com pursues aggressive international expansion, with its global business growing approximately 60% year-over-year in 2025. The company served approximately 20 million inbound travelers during that year as part of its expansion strategy beyond the domestic Chinese market.