Sou Hu Cai Jing·2025-06-20 14:21Core Viewpoint - Ctrip, a leading player in the domestic online travel agency (OTA) market, is accused of abusing its market dominance by forcing hotels to use its "Price Adjustment Assistant" feature, which allows the platform to modify room prices without the merchants' consent, thereby harming their profits [1][2][4] Group 1: Forced Price Adjustment - The "Price Adjustment Assistant" was initially an automated tool for hotels to adjust prices based on market demand, but it has been reported that Ctrip has made it mandatory or defaulted for many hotels, allowing price changes without their knowledge [2][3] - Hotel operators have expressed concerns that prices set below cost due to Ctrip's adjustments could disrupt market equilibrium and affect sales through other channels [2][3] - Industry experts suggest that Ctrip's actions may constitute an abuse of market power, violating the E-commerce Law and Anti-Monopoly Law of the People's Republic of China [2][3] Group 2: Difficulties in Exiting the Platform - Merchants have reported that exiting Ctrip's platform is fraught with challenges, including complex procedures and high penalties for breach of contract [3][4] - Contracts often include strict "exclusive cooperation" or "lowest price guarantee" clauses, which penalize merchants for offering lower prices on other platforms [3] - Ctrip's significant market share, exceeding 50% in the OTA market and reaching up to 70% in popular tourist cities, compels merchants to accept unfavorable terms [3][4] Group 3: Regulatory and Market Implications - The situation highlights a broader issue of internet platforms leveraging their market positions to pressure merchants, undermining fair competition [4] - Legal experts recommend that merchants facing forced pricing or exit difficulties should file complaints with regulatory authorities or consider litigation under the Anti-Monopoly Law [3][4] - There is a call for increased regulatory oversight to prevent the abuse of market dominance in the OTA sector, ensuring a fair and sustainable online travel ecosystem [4]