Make My Trip, Oyo face antitrust probe
Regulator finds prima facie violations of competition law, including by Goibibo
30/10/2019 , Special Correspondent, Mumbai
The FHRAI has alleged cheating by OYO and the other firms.
The Competition Commission of India (CCI) has ordered a detailed investigation into online travel booking companies Make My Trip and Goibibo and hospitality provider OYO based on complaints by members of the Federation of Hotel and Restaurant Associations of India (FHRAI) alleging deep-discounting, payment issues and cheating by these firms.
In an order dated October 28, the CCI said following a complaint from the FHRAI, it had examined various aspects of the three companies’ businesses and concluded that prima facie there were violations of competition law.
CCI assessed the allegations on the basis of the relevant markets. While in the case of Make My Trip and Goibibo (referred to as MMT-Go), it looked at the ‘market for online intermediation services for booking of hotels in India’, for OYO it reviewed the ‘market for franchising services for budget hotels in India’.
The competition watchdog observed that MMT-Go prima facie appeared to be a dominant player in the relevant market. However, in the case of OYO it noted, “Prima facie OYO is not found to hold a dominant position, despite being a significant player in the ‘market for franchising services for budget hotels in India’”.
‘Abuse of dominance’
In a 26-page order, the CCI said there was a prima-facie case to investigate MMT-Go and OYO for alleged violation of the provisions of Section 3(4) of the Competition Act — pertaining to anti-competitive pacts — as also grounds to probe MMT-Go under Section 4 of the Act (relating to abuse of dominant position).
“Thus, whether the commercial agreement between OYO and MMT entails preferential treatment to OYO and consequent exclusion of Treebo, Fab hotel and any other hotel chain and if so, the effect of the same on competition merits investigation,” the CCI said.
“Further, the charging of service fee by MMT is alleged to be discriminatory as such fee is levied on certain hotels and allegedly not levied on high-end of chain hotels. Since MMT is prima facie found to be dominant, this conduct of MMT merits investigation,” the watchdog said, setting a 150-day time frame for its director general to submit a report.
Regulator finds prima facie violations of competition law, including by Goibibo
30/10/2019 , Special Correspondent, Mumbai
The FHRAI has alleged cheating by OYO and the other firms.
The Competition Commission of India (CCI) has ordered a detailed investigation into online travel booking companies Make My Trip and Goibibo and hospitality provider OYO based on complaints by members of the Federation of Hotel and Restaurant Associations of India (FHRAI) alleging deep-discounting, payment issues and cheating by these firms.
In an order dated October 28, the CCI said following a complaint from the FHRAI, it had examined various aspects of the three companies’ businesses and concluded that prima facie there were violations of competition law.
CCI assessed the allegations on the basis of the relevant markets. While in the case of Make My Trip and Goibibo (referred to as MMT-Go), it looked at the ‘market for online intermediation services for booking of hotels in India’, for OYO it reviewed the ‘market for franchising services for budget hotels in India’.
The competition watchdog observed that MMT-Go prima facie appeared to be a dominant player in the relevant market. However, in the case of OYO it noted, “Prima facie OYO is not found to hold a dominant position, despite being a significant player in the ‘market for franchising services for budget hotels in India’”.
‘Abuse of dominance’
In a 26-page order, the CCI said there was a prima-facie case to investigate MMT-Go and OYO for alleged violation of the provisions of Section 3(4) of the Competition Act — pertaining to anti-competitive pacts — as also grounds to probe MMT-Go under Section 4 of the Act (relating to abuse of dominant position).
“Thus, whether the commercial agreement between OYO and MMT entails preferential treatment to OYO and consequent exclusion of Treebo, Fab hotel and any other hotel chain and if so, the effect of the same on competition merits investigation,” the CCI said.
“Further, the charging of service fee by MMT is alleged to be discriminatory as such fee is levied on certain hotels and allegedly not levied on high-end of chain hotels. Since MMT is prima facie found to be dominant, this conduct of MMT merits investigation,” the watchdog said, setting a 150-day time frame for its director general to submit a report.
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