Online travel giant Trip.com Group is facing an antitrust probe in China due to alleged monopolistic practices and abuse of its dominant market position.
According to a translation of a statement from the State Administration for Market Regulation, the case was opened following preliminary checks in line with China’s anti-monopoly law. The regulator did not provide additional details about the investigation.
In response to the notice of investigation, Trip.com Group said it will “actively cooperate with the investigation” and business operations will continue as normal.
However, following news of the probe, CNBC reported that Trip.com's Hong Kong-listed shares fell almost 20% on Thursday, marking the company's worst day in the market since going public in 2021. In New York, U.S.-listed shares closed roughly 17% lower on Wednesday.
In its third quarter earnings report in November, Trip.com Group reported 60% year-over-year growth in international online travel agency platform bookings and a 100% increase in inbound travel bookings. Net revenue was up 16% to $2.6 billion, while adjusted EBITDA totaled $892 million.