The Competition Commission of India (CCI) has taken strict action against two big companies for taking advantage of their strong position in the online travel market and breaking the rules of competition. CCI has imposed a fine of Rs 392 crore on MakeMyTrip-Goibibo and Oyo for stoking competition and misusing their positions. The unfair trade practices of these companies caused losses to other companies and service providers.
Along with levying penalties on both online travel companies, the CCI directed them to modify their terms of agreements with various hotels and chain hotels to give full exposure to other platforms in the sector.
₹223.48 crores fine on MakeMyTrip-Goibibo
Oyo fined ₹168.88 crore
Fine on both companies equal to 05% of total revenue
MakeMyTrip-Goibibo and Oyo are alleged to have entered into agreements with their hotel partners on such terms that the hotel partners will in any case be paid less than the fares being paid on their platforms themselves or any other platforms. Cannot offer room.
It was also claimed that MMT granted preferential treatment to OYO on its platform, denying other companies market access. In October 2019, the regulator requested a thorough inquiry into the situation.
In 2017, MakeMyTrip (MMT) purchased Ibibo Group Holding. MMT India continues to run its hotels and packages business under the brand name MakeMyTrip, and Ibibo India under the brand name Goibibo.