Trip.com Faces Antitrust Investigation as China Tightens Platform Rules

China’s market regulator on Wednesday said it has opened a formal investigation into Trip.com Group, adding fresh pressure on the country’s largest online travel agency at a time of tighter oversight of internet platforms.

The State Administration for Market Regulation (SAMR) said the probe centers on allegations that Trip.com has been “abusing” its dominant market position and engaging in monopolistic practices. The regulator did not provide details in its brief notice.

Trip.com said in a statement it has received the notice and “will actively cooperate with the investigation.” The company added that its business operations remain normal.

Markets reacted quickly. Trip.com’s Hong Kong-listed shares fell sharply after the announcement, dropping about 6.5%.

Earlier Regulatory Attention

Trip.com is a one-stop travel service platform that runs brands including Ctrip, Trip.com, Qunar, and Skyscanner. It was listed on Nasdaq