Trip.com (NASDAQ:TCOM) shares dropped 13% on Wednesday morning after the Chinese online travel group said it is being investigated by the country’s market regulator over possible monopoly practices.
The company disclosed that it has received a formal notice from the State Administration for Market Regulation (SAMR) of the People’s Republic of China confirming that an investigation has been launched under China’s Anti-Monopoly Law. Trip.com said it will “actively cooperate with the investigation” and stressed that its business operations “remain normal.”
The announcement comes amid heightened regulatory scrutiny of large technology and platform companies in China in recent years. Trip.com is a leading player in the country’s online travel sector, offering services such as hotel and accommodation bookings, transport ticketing, packaged travel products and corporate travel management.
The investigation adds to broader concerns among investors about regulatory risks facing major Chinese internet and platform businesses.