CCI Fines MMT, Goibibo, OYO Rs 392 Cr For Unfair Biz Practices
Make My Trip and Goibibo will pay a total fine of Rs 223.48 crore, whereas OYO will pay Rs 168.88 crore. MMT-Go and OYO had entered into confidential commercial agreements allowing MMT-Go to give preferential treatment to OYO on its platform, which lead to a denial of market access to other competitors in the market
The Competition Commission of India (CCI) imposed penalties more than of worth Rs 392 crore on the Online travel firms Make My Trip-Goibibo (MMT-Go) and hospitality services provider OYO, on 19 October.
The penalty order was 131-page long briefing the “unfair business practices”. According to the order, Make My Trip and Goibibo will pay a total fine of Rs 223.48 crore, whereas OYO will pay Rs 168.88 crore.
Briefing the allegations the order said, “MMT-Go has imposed price parity in its agreement/contract with hotel partners whereby the hotel partners are not allowed to sell their rooms at any other OTA or on its own online portal at a price below which it is being offered on MMT-Go’s platform.”
Further it also stated that MMT-Go and OYO had entered into confidential commercial agreements allowing MMT-Go to give preferential treatment to OYO on its platform, which lead to a denial of market access to other competitors in the market. This came out of a detailed investigation on the matter which was carried on since October 2019.
Apart from the penalty, MMT-Go is also directed ” 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).
The regulator has also ordered to make changes in its agreement with hotels/chain hotels, to remove/abandon the exclusivity conditions. “MMT-Go is directed to provide access to its platform on a fair, transparent and nondiscriminatory basis to the hotels/chain hotels, by formulating the platforms’ listing terms and conditions in an objective manner,” said the CCI order.
It may be noted that Ibibo Group business was acquired by MMT through MMT India under the brand name MakeMyTrip, whereas Ibibo India runs under the brand name Goibibo.