NEW DELHI: A detailed probe was ordered against online travel company MakeMyTrip (MMT) and hospitality major OYO by the Competition Commission of India (CCI) over charges abusing their dominant position in the market for indulging in anti-competitive practices.
While ordering the probe, CCI also noted that 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. “The Commission is of the view that prima facie a case of contravention against MMT for abuse of dominant position... is made out on account of all the three allegations analysed supra,” the CCI said.
The order came on a complaint filed by Rubtub Solutions Pvt Ltd, which operates under the brand name of Treebo Hotels in India and is in the business of providing franchising services to budget hotels. As per the complaint, Treebo and its partner hotels are being excluded from listing on MMT’s platform through abrupt termination pursuant to the commercial arrangement between MMT and OYO.
'Besides, MMT is alleged to have imposed “price parity restriction” on Treebo partner hotels via the chain agreement, which restricted it from providing its properties to Booking. com and Paytm at a better price. MMT also allegedly imposed an “exclusivity condition” on Treebo.