China’s market regulator has imposed a $765 million penalty on Trip.com Group. Authorities accused the travel company of violating the country’s anti-monopoly laws.
The State Administration for Market Regulation announced the decision on Saturday. Officials also confiscated illegal gains earned through anti-competitive business practices.
The regulator launched its investigation into Trip.com in January. Authorities examined allegations that the company abused its dominant market position.
According to the regulator, Trip.com earned 1.66 billion yuan through unlawful practices. Additionally, officials imposed a fine of 3.52 billion yuan.
Regulator Finds Anti-Competitive Business Practices
The investigation found Trip.com used exclusive agreements with hotel operators. Consequently, some hotels stopped offering services through competing platforms.
Authorities said the company’s practices restricted fair market competition. Moreover, regulators concluded the conduct harmed both hotels and consumers.
Officials stated the violations also affected the industry’s healthy development. Therefore, the regulator ordered financial penalties and corrective measures.
Trip.com Accepts Penalty And Promises Reforms
Trip.com said it accepts the regulator’s findings and punishment. The company issued its response through an official WeChat statement.
The travel platform pledged to reflect on its business practices. Furthermore, it promised to end inefficient and aggressive competitive strategies.
Trip.com operates hotel, flight, and train booking services in China and overseas. Meanwhile, the latest penalty reflects Beijing’s continued enforcement of anti-monopoly regulations.
