China Fines Trip.com Group ¥5.18 Billion in Record Antitrust Penalty Over Hotel Exclusivity Deals

China's antitrust regulator has handed Trip.com Group the largest penalty ever imposed on an online travel company, closing a six-month investigation into how the country's dominant booking platform dealt with hotels — and forcing a public promise to abandon what the company itself called "inefficient, cutthroat competition."

The State Administration for Market Regulation (SAMR) said on Saturday, July 25 that Trip.com Group had abused its dominant market position in violation of China's Anti-Monopoly Law. The regulator confiscated ¥1.66 billion ($245 million) in illegal gains and imposed a fine of ¥3.52 billion ($520 million), bringing the total penalty to ¥5.18 billion — roughly $765 million.

What the regulator found

According to the SAMR, Trip.com implemented "exclusive dealing arrangements" with hotels, forcing some operators to "forgo operations on other competing platforms."

"This conduct excluded or restricted competition in the relevant market, harmed the interests of hotel operators and consumers... (and) hindered the industry's regulated and healthy development," the SAMR said in its statement.

The investigation opened in January 2026, when Trip.com Group disclosed it had received a notice from the SAMR over suspected abuse of a dominant market position. At the time, the company said its operations remained normal.

Company accepts the decision

Trip.com Group (Nasdaq: TCOM; HKEX: 9961) said in its announcement that it "sincerely accepts" the decision and will adopt rectification measures in accordance with applicable laws and regulations. The company said it will "strengthen its long-term governance mechanisms and strive to contribute to the sustainable development of the travel industry."

In a WeChat post, the company went further: "We will use this penalty as an opportunity for deep reflection and self-transformation. We will resolutely abandon inefficient, cutthroat competition."

Management will host a conference call on Monday, July 27 at 8:00 AM U.S. Eastern Time (8:00 PM Hong Kong Time), with a live webcast on the company's investor relations site.

Why it matters

The penalty is the most significant regulatory action against a Chinese travel platform to date, and Beijing's toughest move against a major internet company since the Alibaba crackdown that began in late 2020. For hotel operators in China, the ruling directly targets the exclusivity practices that limited their ability to distribute inventory across competing platforms — including Trip.com Group's own domestic rivals — and could reshape how rate and inventory agreements are structured in the world's largest domestic travel market.

The decision lands at a sensitive moment for Trip.com Group, which operates Ctrip, Qunar, Trip.com, and Skyscanner. The company already faces a securities class action in the U.S. tied to its AI pricing controversy, and reports Q2 results later this quarter. Investors will be listening on Monday's call for the cost of the rectification measures — and for any signal on how the ruling affects the group's domestic hotel supply strategy.