Key Takeaways
- China’s market regulator is investigating Meituan and Alibaba units for suspected violations of unfair competition laws.
- The investigation follows a recent fine of 5.2 billion yuan on Trip.com for alleged monopolistic behavior.
- Tongcheng and Tujia are also under investigation, while Meituan and Alibaba units are cooperating with authorities.
China’s market regulator has initiated an investigation into Meituan’s Beijing Sankuai Information Technology unit for suspected violations of unfair competition laws, according to CCTV reports.
The investigation comes as part of China’s ongoing efforts to curb monopolistic behavior, which has been exacerbated by a slowing economy.
In a related development, the regulator has also begun investigating Alibaba’s Hangzhou Taomei Aviation Services, Tongcheng Network Technology, and Tujia Online Information Technology (Tianjin) for similar suspected violations.
Tongcheng and Tujia have stated that their operations are normal and that they are cooperating with authorities, while Meituan and Alibaba units have also expressed their willingness to cooperate.
The China Hotel Association has also announced that the Beijing branch of the State Administration for Market Regulation (SAMR) has started investigating four online hotel and travel booking platforms for unfair competitive practices.
The investigation follows a meeting held by the SAMR and the Ministry of Culture and Tourism for the online booking industry, indicating a coordinated approach to address potential monopolistic practices.
This move by the Chinese authorities is part of a broader crackdown on monopolistic behavior, which has seen the regulator fine Trip.com 5.2 billion yuan for its alleged online hotel-booking monopoly.
The investigation into Meituan and Alibaba units highlights the growing scrutiny of tech giants in China, as the government seeks to ensure fair competition and protect consumer interests.
