Trip.com Accepts China Antitrust Penalty, Overhauls Distribution and Pricing

Trip.com Group said it will accept and comply with an administrative penalty decision from China’s State Administration for Market Regulation after an antitrust investigation. CEO Jane Sun called the outcome an opportunity to strengthen governance and adjust the company’s operating model to China’s evolving regulatory environment. The company will end its Tier 1 delegated distribution program and shift partners to a new multi-tier framework, while also discontinuing a Tier 2 delegated distribution program. Trip.com said it decommissioned an automated pricing tool in March and updated pricing-management processes. CFO Cindy Wang expects a second-quarter expense of CNY 5.179 billion tied to the penalty, plus CNY 122 million in contra revenue, while saying these changes won’t fundamentally alter market-driven hotel pricing.