China Fines Ctrip RMB5.18 Billion for Online Hotel Monopoly Abuse

On July 25, the State Administration for Market Regulation imposed an administrative penalty on Ctrip Group Limited for monopolistic practices through abuse of market dominance, with total fines and confiscations amounting to RMB5.179 billion. The penalty decision comprises three parts: ordering Ctrip to cease the illegal activities and fully refund the RMB122 million in compulsory order reserve funds deducted from hotel operators; confiscating illegal gains of RMB1.658 billion; and imposing a fine of RMB3.521 billion—7.5% of its 2025 domestic revenue of RMB46.958 billion.

In January 2026, the regulator opened an investigation into Ctrip under the Anti-Monopoly Law, forming a task force that conducted on-site inspections and gathered evidence across more than 10 provinces. The task force carried out big-data analysis and algorithmic review of extensive electronic records, organized expert assessments, and heard Ctrip’s submissions on multiple occasions. The investigation found that since 2020, Ctrip had abused its dominant position in China’s online hotel booking platform service market, employing its traffic allocation mechanism as the core and using platform rules and technical means to engage in two types of monopolistic conduct.

First, it required ‘special-license’ hotel operators to enter exclusive arrangements, inducing them to choose the special status by offering maximum traffic priority and benefit support, and prohibiting them from cooperating with competing platforms. Ctrip used technical tools and manual cross-checking in real time to monitor compliance and imposed penalties, such as traffic restrictions and de-listing, on violators. Second, it compelled ‘gold-license’ and ‘no-license’ hotel operators to offer ‘lowest prices across all platforms,’ using tools such as ‘Price Adjustment Assistant’ and ‘Listing Connect’ to automatically monitor and lower prices. If a hotel was found to have a lower price on another platform, Ctrip would impose measures including traffic restrictions and deduction of order reserve funds. These practices eliminated market competition, restricted hotels from operating across platforms, and infringed on hotels’ independent pricing rights and consumer interests.

Ctrip issued a statement on July 25, stating that it sincerely accepts the administrative penalty decision, will take corrective measures in accordance with applicable laws and regulations, implement the decision’s requirements, enhance long-term governance mechanisms, and work to promote the sustainable development of the tourism industry.