On December 17, China's State Administration for Market Regulation signaled a major regulatory shift during a press conference, warning that platforms mandating "lowest online prices" from merchants may constitute market dominance abuse or monopolistic agreements. The newly released draft "Internet Platform Anti-Monopoly Compliance Guidelines" identifies eight emerging monopoly risks, targeting industry pain points like algorithmic black boxes and exclusivity clauses.
Amid heightened regulatory scrutiny, an industry-led rights protection movement is gaining momentum. On December 8, the Yunnan Tourism Homestay Association declared war on Trip.com Group Limited (TCOM), publicly soliciting evidence of monopolistic practices ranging from forced exclusivity clauses to arbitrary commission hikes—challenging years of alleged unfair competition.
1. Yunnan B&B Association's Stand Against Trip.com "Everyone's suffered under Trip.com for too long!"—this outcry encapsulates the frustration of countless homestay operators. The association's resolution to initiate anti-monopoly proceedings follows accumulated grievances, with members reporting TCOM's alleged market dominance abuses including: - Forced "pick-one" exclusivity - Unilateral commission increases (typically 10-15% base rate) - Unfair trading terms - Artificial traffic suppression
Retaining specialized legal counsel, the association plans collective complaints to national and provincial regulators, reserving rights for anti-monopoly litigation. Bank of Communications International estimates show Trip.com commands 56% of China's hotel/travel GMV share in 2024, with its ecosystem covering 1.2 million global hotels—making platform dependence near-mandatory for small operators.
2. Regulatory Heat Intensifies The association's move coincides with sustained regulatory pressure: - August 2023: Guizhou regulators reprimanded TCOM and four rivals for pricing interference and exclusivity practices - September 2023: Zhengzhou authorities demanded Trip.com reform its "auto-pricing tool" that allegedly: • Algorithmically enforces price parity across platforms • Automatically downgrades listings refusing lowest-price mandates
Merchants report total commission burdens approaching 40% when accounting for paid visibility boosts—a profitability crisis forcing operators into "no-platform-no-customers vs. platform-no-profits" dilemmas.
State media has condemned such "algorithmic hegemony," where platforms allegedly transfer competitive costs to merchants while maintaining loss-leading consumer pricing. Trip.com's additional traffic control mechanisms—tying visibility to continuous paid promotions and tiered membership programs—further entrench platform dependency.
Once an industry innovator, Trip.com now faces its defining challenge: reconciling shareholder returns with regulatory compliance and ecosystem trust. The market awaits whether the OTAs next decade will be shaped by cooperation or confrontation.