China fines Trip.com $770 million over online hotel-booking monopoly

BEIJING, July 25 (Reuters) - ‌China's market regulator ​said ​on Saturday it had fined and confiscated a total of 5.2 billion yuan ($770 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 authorities say has ‌hurt businesses and ​fuelled deflationary pressures.

($1=6.7719 yuan)

(Reporting by Sophie Yu and Casey Hall; Editing by Clarence Fernandez and Tom ‌Hogue)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• South Korea presidential office urges North Korea to stop 'unnecessary slander', media reports
• Treasury buyback renews dollar-debasement fears
• Russian-Australian arrested for attempting to spy on Ukraine military