14 hrs ago
China Probes Travel Platforms After Trip.com’s $776 Million Fine
China is checking four companies that help people book hotels and travel online.
Officials suspect the companies may have used unfair business practices.
The companies said they will cooperate and that their businesses are operating normally.
The investigation comes after Trip.com received a very large fine for what regulators called a monopoly in hotel bookings.
China has been paying closer attention to big internet platforms.
Officials also want to encourage people to spend more money as the economy slows.
At the same time, Alibaba is reportedly planning to invest heavily in a young artificial-intelligence company called UniPat AI.
That investment has not been completed, and its terms could still change.
China’s market regulator is investigating four online travel and hotel-booking platforms over suspected unfair competition.
The companies include Meituan unit Beijing Sankuai Information Technology and Alibaba unit Hangzhou Taomei Aviation Services.
Tongcheng Network Technology and Tujia Online Information Technology are also under investigation.
The probes follow China’s 5.2 billion yuan penalty against Trip.com for an alleged online hotel-booking monopoly.
Separately, Alibaba is expected to lead a proposed $300 million investment in AI company UniPat AI.
- Who
- China’s State Administration for Market Regulation is investigating units or companies linked to Meituan, Alibaba, Tongcheng and Tujia.
- What
- Regulators are examining suspected unfair competition in online hotel and travel booking.
- Where
- The investigations are being conducted by the Beijing branch of China’s State Administration for Market Regulation.
- When
- The investigations were reported on Saturday after preliminary regulatory findings; they follow Trip.com’s recent penalty.
- Why
- Regulators are intensifying scrutiny of digital platforms and addressing practices they regard as monopolistic or unfair while seeking to revive consumer spending.
Regulators’ View
Companies’ Response
Suspected unfair competition
Regulators’ View
Regulators are examining whether the platforms violated unfair-competition rules in the online travel and hotel-booking market.
Companies’ Response
The companies have not been reported as admitting wrongdoing; they said they are cooperating with the investigation.
Business operations
Regulators’ View
The probes form part of a broader effort to address practices authorities regard as monopolistic or unfair across online platforms.
Companies’ Response
Tongcheng and Tujia said their businesses were operating normally, while Meituan and Hangzhou Taomei said they would cooperate.
Key facts
- Companies investigated
- Beijing Sankuai Information Technology, Hangzhou Taomei Aviation Services, Tongcheng Network Technology and Tujia Online Information Technology (Tianjin)
- Regulator
- Beijing branch of China’s State Administration for Market Regulation
- Industry
- Online hotel and travel booking
- Trip.com penalty
- 5.2 billion yuan, or approximately $776.41 million
- Company responses
- The companies said they were cooperating with regulators; Tongcheng and Tujia said their businesses were operating normally.
- Proposed AI investment
- Alibaba is expected to lead a $300 million investment in UniPat AI.
- Proposed valuation
- The UniPat AI financing would value the company at approximately $2.5 billion.
Sources
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