China fines Trip.com Group $992m over online hotel-booking monopoly
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China began an investigation in January following complaints that Trip.com had imposed unfair terms on hotels and manipulated pricing.
PHOTO: LIANHE ZAOBAO
- China fined Trip.com 5.2 billion yuan (S$992 million) for abusing its dominant position in the online hotel-booking market.
- Trip.com used exclusive deals and technical measures to limit competition and offer lowest prices, harming hotels' pricing freedom.
- The fine aims to curb unfair competition and excessive price pressure in China's internet platform sector, following an antitrust investigation.
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BEIJING – China’s market regulator said on July 25 it had fined and confiscated a total of 5.2 billion yuan (S$991 million) from Trip.com Group for abusing its dominant position in the domestic online hotel-booking market.
Trip.com, China’s largest online travel platform, used traffic-allocation mechanisms, platform rules and technical measures to strike exclusive deals with some hotels as it sought to offer the lowest prices, the regulator said.
The State Administration for Market Regulation (SAMR) confiscated 1.66 billion yuan in illegal gains and imposed a fine of 3.52 billion yuan.
Trip.com, owner of travel-booking brands Ctrip, Skyscanner and Qunar, said: “We sincerely accept and will fully comply with it, and will strictly follow the regulator’s requirements to systematically implement each rectification measure, ensuring that all measures are carried out effectively.”
SAMR also ordered Trip.com to refund booking deposits of 122 million yuan that it said the company had withheld from hotel operators.
The practices harmed competition and consumers by restricting hotels’ ability to operate across platforms and set their own prices, the agency said in a statement on its website.
China began an antitrust investigation in January following complaints that Trip.com had imposed unfair terms on hotels and manipulated pricing.
The penalty comes as Beijing moves to curb unfair competition among internet platforms and excessive price competition that the authorities say has hurt businesses and fuelled deflationary pressures. REUTERS
