Trip.com Fined SGD 1.05B by China for Hotel Booking Monopoly

China’s State Administration for Market Regulation fined Trip.com Group 5.2 billion yuan (SGD 1.05 billion) on July 25 for abusing its dominant market position in online hotel booking. The penalty, split between 1.66 billion yuan in confiscated illegal gains and 3.52 billion yuan in fines, marks the first major antitrust action against China’s travel platform industry. Trip.com must also refund 122 million yuan in withheld hotel deposits and implement comprehensive rectification measures.

How Trip.com dominated and lost

Trip.com controls 56% of China’s online hotel booking market, and nearly 70% when including its subsidiaries Qunar, Ctrip, and Skyscanner. The company used traffic-allocation mechanisms, platform rules, and technical tools to force exclusive deals with hotels and prevent them from listing on competing platforms like Alibaba’s Fliggy or Meituan. This leverage squeezed hotel operators’ margins and restricted their pricing freedom, harming both competition and consumers, regulators found.

Why the penalty is so severe

At 7.5% of revenue, Trip.com’s fine sits just below the 10% maximum under China’s Anti-Monopoly Law. Alibaba paid 4% for its “choose one from two” practice, and Meituan paid 3%. The 5.179 billion yuan total reflects the regulator’s view that Trip.com’s conduct was more covert and damaging than prior cases. Trip.com’s full-year net profit reached 33 billion yuan in 2025, dwarfing the combined profit of all listed tourism companies in China.

Beijing’s broader tech crackdown

The penalty underscores Beijing’s push to curb unfair competition among internet platforms and excessive price competition that authorities say fuels deflation and harms businesses. China launched its investigation in January 2026 after complaints about unfair hotel terms and pricing manipulation. The regulator has summoned other travel rivals including ByteDance’s Douyin and Meituan on antitrust concerns, signaling continued enforcement across the sector.

What this means for TCOM investors

Meyka grades TCOM a strong buy with a 12-month price target of SGD 68.84, but the stock trades at SGD 43.64 as of June 9, down 39% year-to-date. The company trades at a PE of 6.8 and boasts strong fundamentals: net profit margin of 48.8%, ROE of 19.3%, and minimal debt. However, the fine and mandatory operational changes create near-term uncertainty. Two analysts rate the stock a buy, one holds, and consensus sits at 3.0 (buy). The stock’s RSI of 50.21 signals no clear trend, while the Stochastic at 59% suggests moderate momentum.

Final Thoughts

Trip.com’s record fine signals Beijing will not tolerate platform monopolies, even among profitable tech giants. With strong valuations but regulatory headwinds ahead, investors should await clarity on the company’s rectification plan before adding exposure.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.