Trip.com Group Photo: VCG

The market regulator of Zhengzhou, Central China's Henan Province, summoned the main operating entity of trip.com on Wednesday for a regulatory talk after finding the Chinese online travel platform engaged in practices that restricted competition, in violation of national e-commerce law and online anti-unfair competition regulations.

The Administration for Market Regulation of Zhengzhou City said it verified after investigation that the company had used service agreements, transaction rules and technical measures to impose "unreasonable restrictions" on merchants' transactions and pricing, per a statement on the regulator's WeChat account.

The regulator had issued a rectification order to the company on September 4, requiring it to correct the violations, per the statement. The regulatory talk on Wednesday aimed to instruct the firm to overhaul its practices, standardize its operations, ensure fair competition and protect the rights of merchants operating on its platform, it said.

Authorities demanded that the travel services provider take the rectification seriously, revise contract clauses, optimize its pricing tools, and establish a long-term compliance framework with stricter internal oversight and accountability. The company was told to complete the tasks within a specified timeline and prevent similar issues from recurring.

"Fair competition is the cornerstone of a market economy," the regulator said, stressing that online platform operators must strengthen their legal compliance, respect merchants' rights to operate independently, and avoid imposing unreasonable restrictions such as "mandatory activation with no option to exit."  

The market regulator further called on travel platforms to stop using technical tools to manipulate prices or restrict transactions, and instead foster an open, transparent and equitable platform environment.

The regulator also said it will continue to monitor Trip.com's progress, carry out inspections, and ensure that the company fulfills its obligations to maintain a healthy and orderly online market, per the statement.

Just over a month ago, five major platforms — including Trip.com, Tongcheng Travel and Douyin — were summoned by regulators in Southwest China's Guizhou over concerns about practices such as "pick one from two" exclusivity arrangements, interfering with merchants' pricing through technical means, canceling or raising prices after orders took effect, price fraud and price gouging. 

The Guizhou regulator warned the companies of the legal risks such behavior entails, according to a statement posted online.

Global Times