Chinese regulators probe Trip.com over algorithms and pricing

Chinese authorities have launched an anti-monopoly probe into Trip.com, one of the world's largest travel platforms, accusing it of abusing its dominant market position. The investigation targets the platform's algorithms and pricing after complaints from vendors that it harmed travelers and operators in China's tourism market. Analysts warn of potential wider industry scrutiny.

On January 14, China's State Administration for Market Regulation (SAMR) announced an anti-monopoly probe into Trip.com, accusing it of abusing its "dominant market position" and engaging in "monopolistic practices." Trip.com operates its own booking platform as well as Skyscanner, Ctrip, Qunar, and Travix. The company was founded in China as Ctrip in 1999 before acquiring others and rebranding to its current name in 2019.

The investigation zeroes in on Trip.com's algorithms and pricing following backlash from vendors, who complained that these practices hurt travelers and operators in China's vast tourism market. Alberto Vettoretti, managing partner of business consultancy Dezan Shira & Associates, said: "If a platform is no longer just matching buyers and sellers but effectively deciding how an industry functions, regulatory logic shifts from correcting behaviour to preventing market governance from being ‘privatised’."

Vettoretti added: "Current actions are largely driven by compliance and evidence, targeting specific companies and practices rather than signalling a wholesale crackdown on platform businesses."

Analysts note that the case underscores China's regulators' growing focus on platform economies, especially those impacting key sectors like tourism. Keywords from the report include the State Council, Anbound think tank, Christopher Beddor, Hong Kong, Beijing, Yunnan, Anti-Unfair Competition Laws, and the Yunnan Provincial Tourism Homestay Industry Association. While specifics of the probe remain limited, it highlights Beijing's commitment to market fairness.

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