Chinese regulators have opened investigations involving units of Meituan and Alibaba as authorities widen scrutiny of competition practices in the country’s online travel and accommodation market.
China’s market regulator is investigating Meituan unit Beijing Sankuai Information Technology for suspected violations of unfair-competition laws, according to state broadcaster CCTV. Regulators have also identified Alibaba unit Hangzhou Taomei Aviation Services, Tongcheng Network Technology and Tujia Online Information Technology as subjects of investigations following preliminary findings.
The companies involved have said they are cooperating with authorities.
The China Hotel Association separately said regulators had begun investigations into four online travel and accommodation platforms over suspected unfair competitive practices.
The latest action follows a 5.2 billion yuan penalty imposed on Trip.com over monopolistic practices in online hotel booking, underscoring Beijing’s continuing scrutiny of competition among large digital platforms.
The investigations matter because online travel, hotel reservations and local services are significant parts of China’s consumer internet economy, where major platforms compete aggressively for merchants and users.
Investors will be watching for details about the conduct regulators are examining, whether the investigations lead to fines or operational changes, and how the affected companies respond once regulators complete their reviews.
No finding of liability has yet been established in the newly announced investigations.
