China Investigates Meituan, Alibaba Units Over Antitrust Concerns in Beijing

Sarhan Basem
  • China antitrust investigation targets online travel businesses linked to Meituan, Alibaba’s Fliggy, Tongcheng and Tujia.
  • Regulators are examining suspected unfair competition involving China’s online hotel and travel booking market.
  • The companies say they are cooperating with authorities, while regulators have not announced final findings of wrongdoing.

Beijing, China, 19 September, (Brussels Morning Newspaper) – China antitrust investigation authorities have opened formal probes into online travel businesses linked to Meituan and Alibaba, along with Tongcheng and Tujia, over suspected competition violations in the hotel booking market. Beijing regulators are examining how the platforms operate and deal with hotels as China increases oversight of its large digital travel sector.

China antitrust investigation covers four travel businesses

The Beijing Municipal Administration for Market Regulation identified Beijing Sankuai Information Technology, which operates Meituan’s hotel and travel business, and Hangzhou Taomei Aviation Services, associated with Alibaba’s Fliggy platform.

Tongcheng Network Technology and Tujia Online Information Technology (Tianjin) are also being investigated.

The cases follow preliminary regulatory checks and involve possible violations of China’s Anti-Unfair Competition Law, E-Commerce Law and other regulations.

The opening of an investigation does not establish wrongdoing. Regulators have not announced final findings against any of the four businesses.

Meituan and Alibaba-linked Fliggy respond to investigation

The companies have said they will cooperate with authorities while continuing normal operations.

Meituan said its hotel and travel business would “actively cooperate” with the investigation and implement regulatory requirements.

Fliggy said it “respects and safeguards a fair, open and orderly market environment” and would cooperate with the Beijing regulator.

Tongcheng said its operations remained normal and pledged to protect the legitimate interests of consumers and business partners. Tujia also said it would cooperate fully while strengthening governance of its platform.

China antitrust investigation examines Meituan and Alibaba-linked travel platforms

Chinese regulators examine online hotel competition

The investigations come as authorities increase scrutiny of the relationship between large booking platforms and hotels.

Chinese regulators have raised concerns about practices that can influence how accommodation providers set prices, reach customers and compete across different booking services.

On 15 September, the State Administration for Market Regulation and Ministry of Culture and Tourism met major online accommodation platforms. Officials specifically highlighted exclusive arrangements and requirements for hotels to provide the “lowest price” available online.

China Hotel Association raises platform concerns

The China Hotel Association has also called for stronger oversight of online booking businesses.

The industry group has raised concerns about high commissions, algorithm-based traffic allocation, restrictive commercial arrangements and promotional practices.

It has called for greater transparency around commission rates, search rankings, traffic distribution and promotional programmes, arguing that clearer rules would support fairer competition between hotels and platforms.

China expands scrutiny of online travel platforms

The new cases follow significant enforcement elsewhere in China’s online travel industry.

Chinese regulators recently imposed a 5.18 billion yuan penalty on Trip.com after finding that the company abused a dominant position in the online hotel booking market.

The investigations involving Meituan, Fliggy, Tongcheng and Tujia broaden that regulatory scrutiny across several of China’s largest online travel businesses.

Beijing regulators continue competition investigations

Authorities will now examine evidence and the companies’ business practices before deciding whether competition or e-commerce laws were violated.

Meituan, Fliggy, Tongcheng and Tujia remain operational during the investigations. As of 19 September, Beijing regulators had not announced final findings or penalties against the four businesses in the newly opened cases.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Sarhan Basem is Brussels Morning's Senior Correspondent to the European Parliament. With a Bachelor's degree in English Literature, Sarhan brings a unique blend of linguistic finesse and analytical prowess to his reporting. Specializing in foreign affairs, human rights, civil liberties, and security issues, he delves deep into the intricacies of global politics to provide insightful commentary and in-depth coverage. Beyond the world of journalism, Sarhan is an avid traveler, exploring new cultures and cuisines, and enjoys unwinding with a good book or indulging in outdoor adventures whenever possible.
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