MakeMyTrip, Goibibo & OYO Get Fined For ₹392 Crore By CCI
The Competition Commission of India (CCI) has imposed penalties amounting to Rs 392 crore on MakeMyTrip, Goibibo and OYO for unfair business activities.
Online travel agencies (OTAs) MakeMyTrip (MMT), Goibibo, and OYO have each been penalized a total of INR 392 Cr by the Competition Commission of India (CCI) for allegedly engaging in unfair business practices.
The CCI issued an order directing MMT-Go to formulate the platforms’ listing terms & conditions objectively in order to grant access to its platform to hotels and chain hotels on a fair, transparent, and non-discriminatory basis.
While Make My Trip-Goibibo (both companies completed their merger in 2017 but still operate separately) received a fine of INR 223.48 Cr, the competition commission of India levied a fine of INR 168.88 Cr on OYO.
The merged business of MMT-Goibibo forced price parity on hotel partners, according to the CCI’s 131-page ruling.
Hotels are prohibited from lowering their room rates or providing better deals on their own websites or other platforms under price parity provisions.
In addition to the penalty, the competition authority told MMT-Goibibo to “suitably modify” its contracts with affiliate hotels.
Additionally, it instructed the OTA to end any allied pricing parity commitments to hotels in relation to other aggregators.
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The Gurugram-based travel agency was also instructed to annul any agreements with its partner hotels that depended on exclusivity.
The CCI decision further mentioned that MMT denied other participants access to the market by giving OYO preferential treatment on its platform.
The conclusions were a result of a thorough examination into the matter that lasted over three years and was started in 2019.
However, OYO officials stated that they have received a copy of the CCI order and they are reviewing it in detail. They said that most OYO customers book directly through their app, website and other channels in India.
They will continue to work with all OTAs as distribution partners. OYO believes that their business practices and conduct comply with all applicable laws and will take all necessary steps to explain their position in the appropriate forums.
