Regulator warns hotel booking platforms to curb competition risks

China's market regulator warned major online hotel booking platforms not to enter into exclusive arrangements with hotels or require hotels to offer the lowest prices on their websites on Tuesday.

The State Administration for Market Regulation, together with the Ministry of Culture and Tourism, summoned major platforms, including Meituan, ByteDance-owned Douyin, JD, Trip.com Group, Tongcheng and Alibaba-backed Fliggy, for a meeting, the regulator said.

Authorities told the companies to review their business practices and guard against competition risks arising from exclusive partnership agreements and so-called lowest price across the internet requirements, as these provisions may restrict hotels' ability to offer lower rates through rival platforms or other sales channels.

China's online hotel reservation industry has expanded rapidly in recent years, making travel more convenient and helping stimulate tourism consumption, but competition risks in the sector should not be overlooked, they said.

Platforms, as key players in the industry, should adhere to legal boundaries, compete fairly, and strengthen their internal compliance management, the regulators added.

They also called on platforms to establish long-term compliance mechanisms and foster a market in which companies compete on better services and value rather than practices that could distort competition.