CCI Fines MakeMyTrip, Goibibo, Oyo

CCI Fines MakeMyTrip, Goibibo, Oyo
Photo: 20.10.2022 182

Competition Commission of India (CCI) fined online hotel-booking companies MakeMyTrip, Goibibo and hotel chain Oyo a combined $47 million for anti-competitive behaviour.

The CCI has been investigating the companies since 2019 following allegations by a hotel body that MakeMyTrip gave special treatment to SoftBank-backed Oyo on its platform.

The regulator alleges that MakeMyTrip and Goibibo (MMT-Go) imposed a price parity in their agreements with hotel partners. Under such pacts, the hotel partners are not allowed to sell their rooms on any other platform or on its own online portal at a price below the price at which it is being offered on the two entities' platforms.

The Federation of Hotel and Restaurant Associations of India (FHRAI) had alleged that agreements between Oyo and MakeMyTrip to give preferential treatment to Oyo on its platform were restricting market access to competitors such as Fab Hotels and Treebo.

Besides the penalties, CCI has directed MakeMyTrip and Goibibo to modify its agreements with hotels and hotel chains.

The regulator asked both services "to provide access to its platform on a fair, transparent and non-discriminatory basis" and to form "the platforms' listing terms and conditions in an objective manner."

Sources: Mint, CCI

digital markets  India 

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