China is intensifying efforts to ensure fair competition in the platform economy and guide it toward healthy growth, as the country's top market regulator launches an antitrust probe into a leading online travel agency.

The State Administration for Market Regulation said on Wednesday that, based on preliminary findings and in accordance with the Anti-Monopoly Law, it has opened a case to investigate suspected monopolistic conduct involving abuse of market dominance by Trip.com Group.

"This move is a positive step to implement the Anti-Monopoly Law and safeguard fair market competition, demonstrating the country's firm commitment to promoting the healthy development of the digital economy," Chen Liteng, a senior analyst at the Internet Economy Institute, a domestic consultancy, told China Daily.

The investigation is aimed at guiding platform companies toward a path of sustainable development centered on compliant operations and service innovation, Chen said.

This, he added, helps better protect consumer rights while enabling small and medium-sized businesses to participate in market competition on a more level playing field, thereby fostering a more transparent and dynamic industry ecosystem.

"This will not only help Trip.com improve its own governance, but also accelerate the platform economy's shift from scale-driven expansion toward quality-oriented growth, injecting sustained momentum into high-quality development," he said.

In response, Trip.com Group said that it will actively cooperate with the investigation, fully implement regulatory requirements and work with industry participants to build a sustainable and well-regulated market environment.

The group also emphasized that its businesses are operating normally and that it will continue to provide quality services to users and partners.

The probe is in line with broader regulatory efforts targeting monopolistic practices by online platforms and strengthening the protection of legitimate market rights.

In November, drawing on enforcement experience and sector-specific characteristics, the SAMR released a draft guideline on antitrust compliance for internet platforms. The document highlighted a slew of emerging monopoly risks in online platforms, including unfair pricing, below-cost sales, platform blocking, "either-or" arrangements, "lowest price across all platforms" requirements and discriminatory treatment.

Following the move, three central departments jointly issued rules governing price-related conduct on internet platforms in December, prohibiting platform operators from imposing unreasonable restrictions or conditions on pricing behavior by merchants. The rules are set to take effect on April 10 this year.

As a leading player in China's online travel sector, Trip.com Group's businesses span hotel bookings, air ticketing, leisure travel and corporate travel services. The group operates several well-known brands, including Ctrip, Qunar and Skyscanner, with services covering more than 200 countries and regions worldwide and over 600 cities across China.

According to estimates by BOCOM International, the group accounted for 56 percent of gross merchandise value in China's accommodation and travel market in 2024, far surpassing other online travel agencies such as Meituan at 13 percent, Fliggy at 8 percent and Douyin at 3 percent.

If the alleged monopolistic conduct is confirmed, the group could face hefty fines. According to the Anti-Monopoly Law, firms found to have abused a dominant market position may be fined between 1 percent and 10 percent of their sales revenue from the previous year.

In this regard, potential penalties could range from several hundred million yuan to several billion yuan, as Trip.com reported annual revenue of about 53.3 billion yuan ($7.65 billion) in 2024 and approximately 47 billion yuan in the first three quarters of 2025.

The move also weighed heavily on the company's share price. Trip.com Group's Hong Kong-listed shares plunged 6.49 percent in late trading on Wednesday and extended losses to around 20 percent on Thursday. In the United States, the company's shares also plummeted by more than 17 percent at Wednesday's close.

lijiaying@chinadaily.com.cn