Xin Lang Cai Jing·2026-01-16 07:08Core Viewpoint - The State Administration for Market Regulation has initiated an investigation into Ctrip Group for suspected abuse of market dominance, particularly in its hotel business, following numerous complaints from merchants and prior local discussions [3][12]. Group 1: Investigation Background - The investigation is a response to previous local discussions and industry complaints, with Ctrip having been repeatedly interviewed by market regulators since the second half of 2025 [3][12]. - The investigation is based on the Anti-Monopoly Law of the People's Republic of China, focusing on Ctrip's alleged monopolistic practices in the online travel industry [3][12]. Group 2: Merchant Complaints - Numerous merchants have reported unreasonable terms imposed by Ctrip, claiming they have lost pricing power and are forced to comply with platform demands [4][14]. - Merchants have expressed frustration over the difficulty in disabling the "price adjustment assistant" feature, which they claim undermines their pricing strategies [4][13]. - Complaints have highlighted Ctrip's "choose one from two" policy, which may restrict merchants from listing on competing platforms while maintaining high commission rates [4][14]. Group 3: Market Share and Competition - Ctrip holds a significant market share in the hotel and travel sector, with a projected GMV market share of 56% in 2024, while its closest competitor, Tongcheng, holds 13% [6][14]. - The combined market share of Ctrip and Tongcheng accounts for nearly 70% of the domestic OTA market, indicating a lack of fair competition [6][14]. Group 4: Financial Performance - Despite the challenges faced by merchants, Ctrip's financial performance has been strong, with a net profit of 17.2 billion yuan in 2024, representing a 72% year-on-year increase [7][15]. - Approximately 40% of Ctrip's revenue is derived from hotel booking services, highlighting the importance of this segment to its overall business [7][15]. Group 5: Regulatory Context - The investigation aligns with the government's broader efforts to address "involutionary" competition, which is characterized by low-quality, low-price competition that disrupts the market [8][17]. - New regulations under the Anti-Unfair Competition Law aim to prevent platforms from forcing merchants to sell below cost and engaging in deceptive practices [9][18]. - If found guilty of abusing its market position, Ctrip could face administrative fines and the confiscation of illegal gains, as stipulated by the Anti-Monopoly Law [9][18].