Bengaluru: competition commission India (CCI) on Wednesday said it has fined online hotel-booking companies makemytrip Ltd. and Goibibo and IPO-bound hotel chain Oyo A combined $47 million for anti-competitive behavior.
The CCI has been probing companies since 2019 following allegations from a hotel body that MakeMyTrip gave special treatment to SoftBank-backed Oyo on its platform.
The CCI has directed MakeMyTrip and Goibibo (MMT-Go) to amend their market behavior after fining them around $27 million. Oyo was fined $20 million.
The Federation of Hotel and Restaurant Associations of India (FHRAI) had alleged that the agreement between OYO and Nasdaq-listed MakeMyTrip to give OYO preferential treatment on its platform was restricting market access for competitors such as Fab Hotels and Treebo.
The CCI in its order said, “The Commission is of the view that the commercial arrangement between OYO and MMT-GO, which led to the elimination of Fabhotel, Treebo and the list of independent hotels, which were availing the services of these franchisors, were competitive.” ” ,
FHRAI had also alleged that Oyo and MakeMyTrip were hurting competition by charging hotels “excessive” and offering deep discounts.
MakeMyTrip and Oyo did not immediately respond to a Reuters request for comment.
The CCI has been probing companies since 2019 following allegations from a hotel body that MakeMyTrip gave special treatment to SoftBank-backed Oyo on its platform.
The CCI has directed MakeMyTrip and Goibibo (MMT-Go) to amend their market behavior after fining them around $27 million. Oyo was fined $20 million.
The Federation of Hotel and Restaurant Associations of India (FHRAI) had alleged that the agreement between OYO and Nasdaq-listed MakeMyTrip to give OYO preferential treatment on its platform was restricting market access for competitors such as Fab Hotels and Treebo.
The CCI in its order said, “The Commission is of the view that the commercial arrangement between OYO and MMT-GO, which led to the elimination of Fabhotel, Treebo and the list of independent hotels, which were availing the services of these franchisors, were competitive.” ” ,
FHRAI had also alleged that Oyo and MakeMyTrip were hurting competition by charging hotels “excessive” and offering deep discounts.
MakeMyTrip and Oyo did not immediately respond to a Reuters request for comment.