Trip.com Stock Plummets Amid Antitrust Probe and Investor Lawsuit

NEW YORK, NY – January 15, 2026 – Shares of Trip.com Group (Nasdaq: TCOM) have cratered, wiping out a significant portion of its market value after the company confirmed it is the latest Chinese tech giant to fall under the regulatory gaze of the State Administration for Market Regulation (SAMR). The ensuing stock rout has triggered a secondary crisis for the travel behemoth, as a U.S. law firm has launched its own investigation into potential securities law violations, leaving investors to grapple with profound uncertainty.

On January 14, Trip.com’s U.S.-listed shares plunged by 17% following the announcement of the antitrust probe. The sell-off intensified in Asian trading, with its Hong Kong-listed shares tumbling nearly 20% on January 15, marking the steepest single-day drop since its 2021 listing there. The market’s reaction underscores the gravity of the investigation and the potential financial and operational fallout for a company that has long dominated China's online travel landscape.

China's Regulatory Hammer Falls on Travel Giant

Trip.com Group confirmed it received a formal notice from SAMR regarding an investigation into suspected monopolistic behavior, a move that aligns with Beijing's multi-year campaign to rein in the power of its domestic platform economies. While the company stated it will "actively cooperate with the investigation" and that its business operations remain normal, the probe targets the very core of its business model.

The investigation reportedly centers on allegations of abusing a dominant market position. Specific practices under scrutiny include the use of "coercive preferential cooperation clauses," imposing arbitrary commission increases on merchants, and leveraging its platform to limit the visibility of competitors. These allegations echo complaints from smaller players and industry associations, such as a formal grievance filed by a vacation rental association in Yunnan Province in late 2025, which accused Trip.com of forcing merchants into exclusive agreements and then unilaterally raising fees.

Under China's strengthened Anti-Monopoly Law, the potential penalties are severe. If found guilty, Trip.com could face fines ranging from 1% to 10% of its previous year's sales revenue. Based on its recent financial performance, this could translate into a penalty ranging from several hundred million to over $600 million. Beyond financial repercussions, SAMR could impose behavioral remedies, such as ordering the company to cease anti-competitive practices, confiscating illegal gains, and mandating changes to its operational structure to ensure a more level playing field.

Investors Face Uncertainty and Legal Action

In the wake of the stock's dramatic collapse, investors are now facing their own set of challenges. The Monsey, New York-based law firm Wohl & Fruchter LLP announced it is investigating whether Trip.com Group violated federal securities laws. The firm's inquiry focuses on whether the company made misleading statements or failed to disclose the risks associated with its business practices that ultimately led to the regulatory probe and subsequent financial losses for shareholders.

Wohl & Fruchter is now soliciting TCOM shareholders who have suffered losses, inviting them to "discuss your legal rights and options at no charge." This development opens a new legal front for Trip.com in the United States, adding a shareholder lawsuit to its regulatory woes in China. Such securities class-action lawsuits often allege that a company's leadership was aware of practices that could attract regulatory action but failed to adequately inform the market, thereby artificially inflating its stock price.

A Dominant Player Under Scrutiny

The antitrust investigation did not come out of a vacuum. Trip.com Group, which operates a vast portfolio of brands including Ctrip, Qunar, and the global flight aggregator Skyscanner, is the undisputed leader in China's online travel agency (OTA) market. Industry estimates from 2024 suggest the company commanded a staggering 56% of the gross merchandise value in the country's hotel and travel sector. When combined with Tongcheng, another major platform in which it holds a significant stake, its control extends to over 70% of the domestic OTA market.

This dominance has allowed it to build a powerful ecosystem, but it is precisely this market power that has attracted regulatory scrutiny. The practices being investigated, such as demanding exclusivity from hotel partners and manipulating search rankings, are classic examples of conduct that China's Anti-Monopoly Law aims to prevent. The timing of the investigation, just weeks before the peak Spring Festival travel season, suggests regulators are keen to send a clear message about fair competition in a critical consumer sector.

Echoes of Past Crackdowns and an Uncertain Future

The playbook for China's regulatory actions against tech giants is well-established, and the precedents are ominous for Trip.com. In 2021, e-commerce titan Alibaba was hit with a record $2.8 billion fine, equivalent to 4% of its 2019 domestic revenue, for similar monopolistic practices. Later that year, food delivery giant Meituan was fined $533 million, or 3% of its domestic revenue, for forcing merchants into exclusive arrangements.

These cases demonstrate SAMR's willingness to levy substantial fines and, more importantly, to mandate changes that reshape industry dynamics. For Trip.com, the investigation could force a fundamental shift in how it deals with hotel, airline, and other travel partners. An order to end exclusive deals, standardize commission tiers, and ensure algorithmic transparency could erode its competitive moats and open the door for smaller rivals to gain a foothold.

While the company has weathered regulatory scrutiny before, including a 2017 fine for bundling services, the current climate is far more stringent. The revised Anti-Monopoly Law, effective since 2022, carries higher fines and even includes provisions for holding individuals liable. As Trip.com navigates this dual legal and regulatory storm, its path forward appears fraught with challenges that could redefine its market position and the future of online travel in China.