CCI fines MakeMyTrio, Goibibo, Oyo. All you want to know

money

Indian Market
by 5paisa Research Team Last Updated: 2022-10-20T11:32:07+05:30

Some of India’s best-known tech-based hospitality and tourism companies have come in the crosshairs of the country’s anti-trust regulator. 

The Competition Commission of India has slapped penalties totalling more than Rs 392 crore on online travel firms MakeMyTrip, Goibibo and hospitality services provider OYO for unfair business practices.

A fine of Rs 223.48 crore has been slapped on MakeMyTrip-Goibibo and Rs 168.88 crore on OYO, according to a 131-page order.

What were the allegations on which the CCI acted?

According to a Press Trust of India (PTI) report, it was alleged that MMT-Goibibo 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.

It was also alleged that MMT gave preferential treatment to OYO on its platform, further leading to a denial of market access to other players, the PTI report said.

Has the CCI passed any other strictures on the companies?

Yes, apart from the penalties, the CCI has directed MMT-Go to "suitably modify its agreements with hotels/chain hotels to remove/abandon the price and room availability parity obligations imposed by it on its hotel/chain hotel partners with respect to other OTAs (Online Travel Agencies)".

Also, CCI has asked it to modify agreements to do away with certain exclusivity conditions, the PTI report added.

"MMT-Go is directed to provide access to its platform on a fair, transparent and non-discriminatory basis to the hotels/chain hotels, by formulating the platforms' listing terms and conditions in an objective manner," it added.

When did the CCI investigation begin?

The regulator ordered a detailed investigation into the matter in October 2019.

MakeMyTrip (MMT) acquired Ibibo Group Holding in 2017. MMT continues to operate its hotels and packages business through MMT India under the brand name MakeMyTrip, and Ibibo India under the brand name Goibibo.

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