TCOM required to rectify improper business practices Quick Note

Research evidence excerpt

TCOM required to rectify improper business practices Quick Note

Global Markets Research

Trip.com TCOM.OQ TCOM US 27 July 2026

EQUITY: INTERNET & NEW MEDIA

RatingTCOM required to rectify improper business practices Remains Neutral

Target price USD 51.00 RemainsQuick Note

Closing price USD 43.64 24 July 2026What happened?

On 25 July, China’s State Administration for Market Regulation (SAMR) announced its

conclusions following a six-month antitrust investigation into Trip.com (TCOM US,

Neutral). Research Analysts

China Internet & New MediaIn its announcement, SAMR stated that TCOM held a dominant position in China’s online

Jialong Shi - NIHKhotel-booking market, with a share of nearly 60% in 2025. The regulator determined that

Jialong.shi@nomura.comTCOM had abused this position since 2020 by requiring select high-quality hotels to enter

+852 2252 1409

into exclusive arrangements, while compelling other properties to offer TCOM their lowest

Rachel Guo - NIHKavailable online prices. Furthermore, SAMR found that TCOM enforced these

rachel.guo@nomura.comrequirements through preferential or punitive traffic allocation, automated and manual

+852 2252 1400

price adjustments, removal of platform privileges, delisting of hotels, and deductions from

hotel reserve accounts. SAMR concluded that these practices restricted competing

platforms’ access to hotel inventory and competitive pricing, interfered with hotels’ channel

and pricing autonomy, raised entry barriers, and ultimately harmed consumer choice and

industry development.

Regulatory action and financial impact

SAMR has ordered TCOM to cease these practices and refund CNY122.8mn (USD18mn)

of hotel reserves. Additionally, SAMR requires the confiscation of CNY1.66bn