'Unfair business practises': CCI imposes penalties of over Rs 392 crore on MakeMyTrip, Goibibo and OYO

On Wednesday, Competition Commission of India (CCI) ordered penalties on MakeMyTrip, Goibibo, and hospitality provider OYO for engaging in "unfair business practises," totaling more than Rs 392 crore. According to the order, the national regulator fined Make My Trip-Goibibo (MMT-Go) 223.48 crore and OYO 168.88 crore.

MMT-Go was accused of seeking price parity in their contracts with accommodation partners. Such agreements prohibit hotel partners from selling their rooms for less than what is charged on the two parties' platforms, whether on another platform or their own online portal.

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In addition to the fines, CCI has instructed MMT-Go to alter its contracts with hotels and hotel chains. Additionally, it was claimed that MMT-Go treated OYO favorably on its platform, denying other businesses access to the market.

The commission instructed MMT-Go to change its hotel contracts and remove the pricing and room availability parity requirements it had placed in comparison to other online travel agencies. The commission also requested that MMT-Go eliminate the exclusivity terms from its contracts with hotels.

Additionally, it directed MMT-Go to formulate the platforms' listing terms and conditions objectively and tell all of its hotels about the adjustments in order to grant access to its platform to the hotels in a fair, open, and non-discriminatory manner.

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OYO spokesperson reacted to the CCI’s order and said, "We have received a copy of the CCI order and are reviewing it in detail. Most OYO customers book directly through our app, website, and other channels in India. We continue to work with all OTAs as distribution partners.

OYO believes that our business practices and conduct comply with all applicable laws and will take all necessary steps to explain our position in the appropriate forums," CNBC reported.

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