China Fines Trip.com $765 Million in Biggest Antitrust Action Since Alibaba
SAMR penalty targets exclusive hotel deals and algorithmic price controls in online booking market.
China's State Administration for Market Regulation (SAMR) has fined Trip.com Group 5.18 billion yuan (US$765 million) for abusing its dominant position in the online hotel-booking market, marking the most significant antitrust enforcement against a major Chinese internet platform since Alibaba's record 18.2 billion yuan penalty in 2021.
Penalty Breakdown
The total sanction comprises a 3.521 billion yuan fine plus confiscation of 1.658 billion yuan in illegal gains, SAMR announced July 25. The fine represents 7.5% of Trip.com's 2025 domestic sales, which totaled 46.958 billion yuan.
Regulators also ordered the company to refund 122 million yuan in order deposits deducted from hotel operators.
Anticompetitive Practices
SAMR's investigation, launched in January 2026, found that Trip.com engaged in exclusionary conduct dating to 2020. The platform forced "special-tier" hotels into exclusive dealing arrangements and required both "gold-tier" and ordinary hotels to offer their lowest rates on Trip.com.
The company deployed automated pricing tools alongside manual intervention to detect and undercut cheaper listings on competing platforms. Hotels that failed to comply faced penalties including reduced traffic allocation or removal of promotional labels.
Company Response
Trip.com said it accepts the ruling and will reform its business model. "We accept the ruling sincerely and resolutely," the company said in a WeChat statement, adding it would implement comprehensive rectification measures.
In an internal letter to employees, CEO Jane Sun instructed staff not to "deflect or make excuses" when responding to questions about the case, according to reporting by the South China Morning Post.
Regulatory Context
The enforcement action signals Beijing's continued focus on platform dominance and algorithmic fairness in the digital economy. According to SCMP, the investigation followed regulatory warnings issued in Guizhou and Zhengzhou, as well as complaints from a tourism homestay association in Yunnan province.
In March 2026, Trip.com removed its "AI business assistant" tool, which regulators linked to algorithmic pricing adjustments that limited merchant autonomy.
The penalty underscores that China's tech crackdown, which intensified in 2021, remains active nearly five years later, with regulators now targeting specific anticompetitive mechanisms rather than broad monopoly status alone.