China’s market regulator has opened an investigation into Trip.com Group Ltd, the country’s largest online travel agency, over alleged antitrust violations, according to the State Administration for Market Regulation (SAMR).
The probe centers on accusations that the company abused its dominant market position and engaged in monopolistic practices, the regulator said in a statement dated January 14th.
According to a report by local media outlet 21st Century Business Herald, the SAMR decided to formally place the company under investigation following preliminary checks, citing China’s Anti-Monopoly Law. The authority did not disclose further details on the specific conduct under scrutiny.
The announcement weighed on investor sentiment. Trip.com’s Hong Kong-listed shares fell sharply following the news, at one point declining more than 9 percent in late trading, before closing down about 6.5 percent.
In a statement released after the investigation was disclosed, Trip.com said it had recently received official notification from the regulator regarding the probe. The company said it would ‘actively cooperate with the investigation, fully implement regulatory requirements, and work with industry partners to build a sustainable and healthy market environment’. It added that all of its business operations remain normal and that it will continue to provide quality services to users and partners.
Founded in 1999 and headquartered in Shanghai, Trip.com was listed on Nasdaq in 2003 and completed a secondary listing in Hong Kong in 2021. The company operates major travel brands including Ctrip, Qunar, Trip.com, and Skyscanner, alongside several auxiliary brands. It is widely regarded as a leading player in the online travel agency field, with more than half of China’s online travel market share and operations spanning multiple cities in mainland China, as well as Hong Kong and Taiwan.
The investigation comes amid heightened regulatory scrutiny of China’s technology sector in recent years, as authorities seek to address competition concerns and reinforce compliance with antitrust rules.
