Ctrip was fined 5.179 billion yuan for abusing its market dominance to implement monopolistic behavior
[Abuse of market dominance to implement monopolistic behavior, Ctrip was fined and confiscated 5.179 billion yuan] On July 25, the State Administration for Market Regulation imposed administrative penalties on Ctrip Group Co., Ltd. for abusing market dominance to implement monopolistic behavior, with a total fine of 5.179 billion yuan.
On July 25, the State Administration for Market Regulation imposed administrative penalties on Ctrip Group Co., Ltd. (hereinafter referred to as Ctrip) for abusing its market dominance to implement monopoly behavior in accordance with the law, with a total fine of 5.179 billion yuan. Since January 2026, the State Administration for Market Regulation has launched an investigation into Ctrip in accordance with the Anti-Monopoly Law of the People's Republic of China (hereinafter referred to as the "Anti-Monopoly Law"); it has established a special task force to strictly standardize and promote the investigation and handling of cases in a steady and orderly manner in accordance with the law. It has conducted on-site investigations on Ctrip and obtained a large number of Evidence materials; conduct extensive investigations and evidence collection on other competitive platforms and a large number of hotel operators on the platform; comprehensively analyze and sort out evidence materials, conduct in-depth big data analysis and algorithm analysis; organize experts to conduct research and demonstration; listen to Ctrip's statements and opinions multiple times to protect its legal rights. After investigation, since 2020, Ctrip has abused its dominant position in the online hotel booking platform service market in China, using the traffic distribution mechanism as the core and using platform rules and technical means to implement two monopolistic behaviors: The first is to require "special brand" hotel operators to carry out exclusive cooperation, and use incentives such as maximum traffic tilt and equity support to induce hotel operators with high transaction volume, good service quality and strong user attraction to choose "special brand", and require them not to cooperate with competitive platforms. The second is to force "gold medal" and "unlicensed" hotel operators to give the "lowest price on the entire network", requiring cross-platform hotel operators to have the lowest prices on the Ctrip platform on the entire network, and allowing them to directly adjust prices. If the hotel price is found to be higher than that of competitive platforms, Ctrip will lower the price through technical tools such as "Price Adjustment Assistant" and "Listing Pass" and manual means. At the same time, Ctrip uses technical means to monitor the implementation of exclusive cooperation with hotel operators and the "lowest price on the entire network", and ensures the implementation of the behavior through punitive measures such as traffic restrictions, "delisting", and deduction of order reserves. Ctrip's above-mentioned behavior eliminates and restricts market competition, restricts hotel operators' cross-platform operations, infringes on hotel operators' independent pricing rights, harms consumer interests, intensifies "involvement" competition in the industry, and hinders the healthy development of the industry. It constitutes the abuse of market dominance that restricts transactions without justifiable reasons and imposes unreasonable transaction conditions prohibited by Items 4 and 5 of Article 22, Paragraph 1 of the Anti-Monopoly Law. According to the provisions of Articles 57 and 59 of the Anti-Monopoly Law, taking into account the nature, extent, duration and other factors of Ctrip’s monopoly behavior, the State Administration for Market Regulation made an administrative penalty decision in accordance with the law: ordering Ctrip to stop illegal activities and fully refund the compulsory deduction of 122 million yuan from hotel operators’ order reserves; confiscate illegal gains of 1.658 billion yuan; impose a fine of 7.5% of its domestic sales in China of 46.958 billion yuan in 2025, totaling 3.521 billion yuan. The State Administration for Market Regulation will supervise Ctrip's comprehensive rectification, make the rectification measures public, accept social supervision, effectively protect the legitimate rights and interests of hotel operators and consumers, maintain the market order of high quality, low price, and healthy competition, and promote industry innovation and healthy development.