Trip.com shares plunge 17% amid anti-monopoly probe and AI pricing tool scrutiny, triggering a class action lawsuit.

Trip.com Group's shares fell 17% after the company disclosed an investigation by Chinese regulators under the Anti-Monopoly Law related to its AI-driven price adjustment tool. This tool automatically lowered hotel prices, which raised concerns about monopolistic practices and coercion of hotel partners. The sharp market reaction erased over $8 billion in market value and led to a securities class action lawsuit accusing Trip.com of misleading investors about regulatory risks. Following the probe, Trip.com shut down the AI pricing tool and saw the resignation of its co-founders from the board, with ongoing investigations into the company's business practices and disclosures.