Hotel Booking Platforms Banned from Offering Unbeatable Online Prices

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On July 25 this year, the State Administration for Market Regulation imposed an administrative penalty on Ctrip for abusing its dominant market position, which included practices such as exclusive partnerships and "unbeatable online prices" that constituted monopolistic behavior. This action highlights a growing regulatory focus on competitive practices within the digital economy.

In response, both the State Administration for Market Regulation and the Ministry of Culture and Tourism have directed all platform companies to treat this case as a cautionary example. They are required to conduct self-inspections, proactively mitigate issues like exclusive cooperation and "unbeatable online prices," and address potential competition risks that fall under the category of excessive market rivalry.

Experts note that this administrative guidance sends a clear regulatory signal across the entire industry. It underscores that platforms, irrespective of their scale, must refrain from engaging in practices that harm market competition. This move aims to foster a healthier, more balanced competitive environment in the online travel and hotel booking sector.

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