Rs 392 crore fine on OYO, MakeMyTrip and Goibibo...
Rs 392 crore fine on oyo, MakeMyTrip and Goibibo...
Competition Commission of india has imposed a fine of Rs 392 crore on online hotel booking websites MakeMyTrip and Goibibo and budget hotel chain OYO. The CCI imposed this fine on all three on Wednesday. This tough step has been accused of colluding in hotel room listings on these three companies to eliminate competition. Hotel Association had complainedAccording to the indian Express report, the Federation of Hotel and Restaurant Associations of india (FHRAI) filed a complaint against MakeMyTrip and oyo in the year 2019. It was said in the complaint that 'special treatment' is being given by MakeMyTrip to SoftBank-funded oyo on its platform. It was also said in the complaint that due to the listing agreement between these companies, they have become dominant in the online hotel booking market. Apart from this, there was also a complaint of using MakeMyTrip's deep discounting method.Based on this complaint, the CCI started investigation in the year 2019 itself. Based on this investigation, it was decided to impose the fine on Wednesday. FHRAI has welcomed the CCI's decision and said that it is a huge victory for the hospitality industry against the domination of aggregators.What has CCI said in its order?The CCI has said in its order that MakeMyTrip and Goibibo will have to correct their 'market behaviour'. Both the companies are directed to modify their agreements with the hotels and hotel chains, to remove parity obligations relating to price or availability of rooms at their partner hotels or chain hotels. This order means that now MakeMyTrip can no longer force its affiliated hotels to show more of the same room price on other websites.What can these companies do now?This decision of CCI can be challenged on behalf of oyo and MakeMyTrip. After this decision, oyo said that most oyo customers make hotel bookings directly through its mobile app, website and other channels. We are continuously working as a distribution partner with all Online Travel Agents (OTAs). oyo believes that its business practices and practices comply with all laws.MakeMyTrip said in its statement, it is a completely 'pureplay market place', in which there is no leaning towards anyone. We are studying the order of CCI. We believe that this order will have a negative impact on the level of competitiveness and development of the e-commerce market in India.
Competition Commission of india has imposed a fine of Rs 392 crore on online hotel booking websites MakeMyTrip and Goibibo and budget hotel chain OYO. The CCI imposed this fine on all three on Wednesday. This tough step has been accused of colluding in hotel room listings on these three companies to eliminate competition. Hotel Association had complainedAccording to the indian Express report, the Federation of Hotel and Restaurant Associations of india (FHRAI) filed a complaint against MakeMyTrip and oyo in the year 2019. It was said in the complaint that 'special treatment' is being given by MakeMyTrip to SoftBank-funded oyo on its platform. It was also said in the complaint that due to the listing agreement between these companies, they have become dominant in the online hotel booking market. Apart from this, there was also a complaint of using MakeMyTrip's deep discounting method.Based on this complaint, the CCI started investigation in the year 2019 itself. Based on this investigation, it was decided to impose the fine on Wednesday. FHRAI has welcomed the CCI's decision and said that it is a huge victory for the hospitality industry against the domination of aggregators.What has CCI said in its order?The CCI has said in its order that MakeMyTrip and Goibibo will have to correct their 'market behaviour'. Both the companies are directed to modify their agreements with the hotels and hotel chains, to remove parity obligations relating to price or availability of rooms at their partner hotels or chain hotels. This order means that now MakeMyTrip can no longer force its affiliated hotels to show more of the same room price on other websites.What can these companies do now?This decision of CCI can be challenged on behalf of oyo and MakeMyTrip. After this decision, oyo said that most oyo customers make hotel bookings directly through its mobile app, website and other channels. We are continuously working as a distribution partner with all Online Travel Agents (OTAs). oyo believes that its business practices and practices comply with all laws.MakeMyTrip said in its statement, it is a completely 'pureplay market place', in which there is no leaning towards anyone. We are studying the order of CCI. We believe that this order will have a negative impact on the level of competitiveness and development of the e-commerce market in India.