Multiple hotel operators in Zhengzhou have lodged complaints alleging that Trip.com Group modified room rates on its platform without authorization, sparking a regulatory investigation and raising questions about tech platforms’ pricing control over merchants. Hotel managers claim the travel booking giant pressured businesses to activate an automated “Price Adjustment Assistant” tool that systematically altered promotional discounts and room rates – sometimes deviating from merchant-set prices by 10-20 yuan ($1.38-$2.75).
The Zhengzhou Market Regulatory Bureau confirmed to CNBC that it has initiated an investigation into the matter. “We’re reviewing relevant details with the platform and cannot disclose further information during ongoing proceedings,” a bureau representative stated Tuesday.
Two hotel operators described intensified scrutiny, with one manager in the city’s Airport Economic Zone noting: “Regulatory authorities are actively collecting evidence.” A Huiji District hotel operator added: “Investigators visited our property to document pricing irregularities.”
Trip.com maintained its pricing tool serves legitimate business purposes. “The Price Adjustment Assistant helps lodging providers remain competitive through real-time market alignment,” a customer service representative told CNBC. The company clarified that hotels may opt out of the feature by contacting its support team.
However, the Hei Mao consumer complaint platform reveals over 110 grievances alleging Trip.com reactivated the pricing tool without consent after deactivation requests. Industry analysts suggest this reflects growing tension between platforms seeking rate parity and merchants pursuing pricing autonomy.
Legal experts warn such practices risk violating multiple regulations. Fu Jian, director of Henan Zejin Law Firm, cited China’s Price Law provisions protecting merchants’ autonomous pricing rights and prohibiting platforms from manipulating rates through technical means. “Unauthorized price adjustments could constitute market manipulation if proven to suppress competition,” Fu noted.
The dispute underscores broader concerns about platform power in China’s $100B online travel industry. While dynamic pricing tools are common globally, legal analysts emphasize platforms must balance algorithmic efficiency with regulatory compliance. The investigation’s outcome could set precedents for how China’s updated Anti-Unfair Competition Rules apply to digital marketplaces.
Trip.com, which commands over 60% of China’s online hotel booking market per Bloomberg Intelligence, faces increasing scrutiny as regulators examine tech platforms’ commercial practices. The case emerges amid Beijing’s push to implement 2024’s revised E-commerce Law, which specifically prohibits platforms from arbitrarily modifying merchant pricing.
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