China opens probes into four online travel booking platforms

Chinese authorities have launched investigations into four prominent online hotel and travel booking platforms, raising concerns about potential anti-competitive practices that may harm competition and merchant rights, according to Bloomberg. The scrutiny targets Hangzhou Taomei Aviation Service, Tongcheng Network Technology, Tujia Online Information Technology (Tianjin), and Beijing Sankuai Information Technology, as stated by the Beijing Municipal Administration for Market Regulation.

The probes come after a wider regulatory review of China’s online travel sector and a meeting with affected platforms organized by the State Administration for Market Regulation and the Ministry of Culture and Tourism.

The investigation aims to examine business practices that could impact fair competition and the rights of merchants utilizing these platforms. Authorities are particularly interested in areas such as search rankings, traffic allocation, commission rates, and promotional programs offered by these platforms. The China Hospitality Association has expressed support for the investigations, urging booking platforms to enhance transparency on their trading rules and algorithms.

The group specifically highlighted search rankings, traffic distribution, commission rates, and promotional programs as areas in need of clearer information for merchants.

The industry group also called for increased self-regulation within the sector and closer collaboration between online booking platforms and hospitality businesses. This latest regulatory action follows a significant antitrust penalty of 5.18 billion yuan ($765 million) imposed on Trip.com Group in July. The penalty was issued for alleged abuse of dominance in China’s online hotel booking market.

The ongoing investigations emphasize the continued focus of regulators on the interactions between major online travel platforms and hotels or other merchants, particularly concerning commission structures, platform traffic distribution, and promotional strategies. As of now, no penalties or findings have been announced against the four platforms under investigation.