Trip.com shares drop 22% after China launches antitrust probe

Trip.com shares fell nearly 22% in Hong Kong on January 15 after Chinese regulators announced an antitrust investigation on January 14.

China’s State Administration for Market Regulation said it is investigating Trip.com for suspected abuse of its dominant market position and monopolistic practices.

Trip.com, Asia’s largest online travel company by market value, also holds stakes in Skyscanner, MakeMyTrip, and other travel firms.

The company said it will actively cooperate with authorities, and that its operations are functioning as usual.

Trip.com was the worst performer on the Hang Seng index following the announcement.

This investigation follows a 2021 antitrust action against Alibaba that resulted in a record 18.2 billion yuan (US$2.8 billion) fine.

The probe comes as travel demand in China is set to rise, with cross-border trips by mainland Chinese travelers projected at 165 million to 175 million in 2026, up from about 155 million last year.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

SAMR favors behavioral fixes; conduct fines near 3%–5% of revenue

China’s State Administration for Market Regulation (SAMR), the country’s antitrust regulator, favors behavioral remedies (changes to conduct) over structural ones (divestitures) 1. In 2022 SAMR imposed behavioral conditions in four of five conditional merger approvals requiring non-discrimination plus Fair, Reasonable, and Non-Discriminatory (FRAND) supply terms instead of divestitures 1.
CNKI paid 5% of 2021 revenue for exclusive agreements plus excessive pricing 1. Geistlich Pharma paid 9.12 million yuan, equal to 3% of 2020 China revenue, for resale price maintenance 2. In platform-style dominance cases SAMR has ended exclusivity and tackled excessive pricing, which lets firms keep operating 1.

Alternative OTAs and metasearch can gain as Chinese travelers shift to social

Ages 18 to 34 favor Xiaohongshu (RedNote), while 45 to 65 rely more on online travel agencies (OTAs) such as Ctrip (Trip.com’s domestic brand) 3.
Social media leads trip inspiration at 50% versus 39% for friends or family, and Douyin plus Xiaohongshu drive above-average booking conversion 3 4. 75% of Chinese travelers want to go abroad in 2025 3, and summer 2025 visa applications are up over 10% year on year with requests to Europe up over 80% 5. Rival booking platforms and metasearch engines (price-comparison travel search engines that refer users to booking sites) can build presence amid regulatory uncertainty around Trip.com.