CCI probe against Oyo, MakeMyTrip over violation of competition norms
The Competition Commission on Monday ordered a detailed probe against MakeMyTrip (MMT) and Oyo for allegedly indulging in unfair business practices, on a complaint filed by the operator of Treebo Hotels.
This is the second time in less than six months that the fair trade watchdog has called for an investigation against the two entities after finding prima-facie evidence of violation of competition norms.
MMT, an online travel agency, has a pact with Oyo, which provides franchising services to budget hotels.
The complainant — Rubtub Solutions — operates Treebo Hotels. Exclusion of Treebo and its partner hotels from listing on the MMT platform, price parity restrictions on the platform and an exclusivity condition on Treebo are the three main issues raised by the complainant, the watchdog said.
In a 13-page order, the CCI said a case against MMT and Oyo for entering into a vertical arrangement having an appreciable adverse effect on competition in the market is also “prima facie” made out.