China's market regulator has launched investigations into units of major technology companies over suspected unfair competition practices. According to reports from Reuters citing Chinese state broadcaster CCTV, the Beijing branch of the State Administration for Market Regulation (SAMR) is investigating Meituan's unit Beijing Sankuai Information Technology. The probe also covers Alibaba unit Hangzhou Taomei Aviation Services, Tongcheng Network Technology, and Tujia Online Information Technology (Tianjin), following preliminary findings by regulators. The investigations were launched after preliminary findings by regulators, as reported by CCTV on September 19. The Beijing Municipal Administration for Market Regulation identified these companies as part of broader scrutiny of online travel platforms, with cases involving possible violations of China's Anti-Unfair Competition Law, E-Commerce Law and other regulations.
Despite the regulatory headlines, Meituan stock showed resilience with shares trading around HKD 73.20 on September 19, 2026, posting a modest 0.41% daily gain as investors digested the fresh regulatory news. According to Zonebourse price data, the stock's recent five-day performance stood at minus 2.53%, while the company's market capitalization was positioned near ₹57,580 crore ($575.8 billion). However, the stock remains significantly below earlier levels, with a 29.14% decline over a longer horizon, reflecting how regulatory and competitive pressures have weighed on investor sentiment. The modest market response suggests investors are treating the development as a manageable risk for now, even as the regulatory scrutiny adds uncertainty to Meituan's growth prospects in the competitive online travel sector.
The investigated companies have responded to the regulatory action through official channels, with all companies confirming cooperation while maintaining normal operations. As reported by Reuters, Tongcheng and Tujia said in posts on their official WeChat accounts that their operations remain normal and that they are operating with authorities. Meituan also stated it would "actively cooperate" with the investigation and implement regulatory requirements, while Fliggy confirmed it would "respect and safeguard a fair, open and orderly market environment" and cooperate with the Beijing regulator. The China Hotel Association separately confirmed that the Beijing branch of SAMR had begun investigating four online hotel and travel booking platforms over suspected unfair competitive practices.
The investigation follows a meeting between SAMR, the Ministry of Culture and Tourism, and representatives from the online booking industry on September 15, according to the China Hotel Association. This action represents part of China's broader crackdown on monopolistic and anti-competitive practices in the online travel sector. Chinese regulators have raised specific concerns about practices that can influence how accommodation providers set prices, reach customers and compete across different booking services. Officials specifically highlighted exclusive arrangements and requirements for hotels to provide the "lowest price" available online, as reported by the China Hotel Association. The newly disclosed investigations focus on Meituan Travel's role in online hotel booking, a segment where Meituan competes not only with dedicated travel platforms but also with units of larger peers such as Alibaba, adding another layer of uncertainty to the competitive landscape.
The investigations involving Meituan, Fliggy, Tongcheng and Tujia broaden regulatory scrutiny across several of China's largest online travel businesses. Chinese regulators recently imposed a ₹518 crore ($5.18 billion) penalty on Trip.com after finding that the company abused a dominant position in the online hotel booking market. As of September 19, Beijing regulators had not announced final findings or penalties against the four businesses in the newly opened cases. The companies remain operational during the investigations, with authorities examining evidence and business practices before deciding whether competition or e-commerce laws were violated. The new cases follow significant enforcement elsewhere in China's online travel industry, as authorities increase scrutiny of the relationship between large booking platforms and hotels, with future growth in Meituan's hotel and travel booking revenue becoming more dependent on how regulators interpret discount practices, exclusivity arrangements and data use.
