China · Economy and platform regulation ·

China investigates Meituan and Alibaba units, Tongcheng and Tujia

Beijing's market regulator opened investigations on September 19 into four online hotel and travel-booking platforms linked to Meituan, Alibaba, Tongcheng and Tujia over suspected violations of unfair-competition rules.

Why it matters

The probes involve major Chinese travel and consumer-service platforms and could affect hotel commissions, search placement, pricing and contracts. An investigation is not a finding of wrongdoing; conclusions and remedies have not been announced.

Full report

Reuters, citing state broadcaster CCTV, reported that Beijing's branch of the State Administration for Market Regulation opened investigations after preliminary checks into Beijing Sankuai Information Technology, Hangzhou Taomei Aviation Services, Tongcheng Network Technology and Tujia Online Information Technology (Tianjin).

The China Hotel Association separately said Beijing regulators were investigating four online hotel and travel-booking platforms for unfair competitive practices. It did not identify the operators in its statement and said the action followed an industry meeting convened by the national market regulator and the Ministry of Culture and Tourism.

Meituan said on its website that it would cooperate. Tongcheng, Tujia and Hangzhou Taomei said through official WeChat channels that they were cooperating; the companies also said operations were normal. Those are company statements and do not predict the findings.

The action comes amid tighter scrutiny of China's online travel market. Trip.com was recently ordered to pay about 5.2 billion yuan after regulators found monopolistic conduct in online hotel booking. The specific conduct, period under review and possible penalties in the four new investigations have not been disclosed.

This report is an original summary based on verified sources, not a verbatim reproduction.

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