CCI imposes Rs392 crore penalties on MakeMyTrip, Goibibo, OYO

The Competition Commission of India (CCI) on Wednesday slapped a fine totalling more than ₹392 crore on online travel aggregators MakeMyTrip (MMT), Goibibo, and OYO for their alleged unfair business practices.

CCI slapped a fine of ₹223.48 crore on Make My Trip-Goibibo (MMT-Go) and ₹168.88 crore on OYO.

“CCI imposes penalties of ₹223.48 crores and ₹168.88 crores upon MMT-Go and OYO respectively, besides directing MMT-Go to amend its market behaviour, for indulging in anti-competitive conduct,” the anti-trust regulator said in a tweet.

The Competition Commission of India (CCI) has been investigating the companies since 2019 following allegations by a hotel body that MakeMyTrip gave special treatment to SoftBank-backed Oyo on its platform.

In its 131-page order, the CCI alleged that the consolidated entity of MMT-Goibibo imposed price parity on hotel partners. Price parity clauses bar hotels from offering their rooms at lower prices or on better terms on their own websites or on other platforms.

The CCI also examined the commercial arrangement between MMT-Go and OYO vide which FabHotels and Treebo were delisted from the former’s online portals in 2018. 

“Based on the material available on record, the CCI found that there was an agreement/understanding between OYO and MMT-Go which was in the nature of a vertical arrangement amenable to Section 3(4)(d) read with Section 3(1) of the Act and the same had adversely affected competition in the market by denying access to an important channel of distribution through foreclosure,” the order said.

Observing that besides imposing monetary penalty, it is imperative for the fair market regulator to ensure an environment that supports fair competition, the CCI prescribed certain broad behavioral remedies to MMT-Go. 

“MMT-Go has been inter-alia directed to modify its agreement with hotels/chain hotels to remove/abandon the price and room availability parity obligations with respect to other OTAs and also the exclusivity conditions that exist inter-alia in the form of D-minus clause,” the order said.

“MMT-Go is directed to provide access to its platform on a fair, transparent and non-discriminatory basis to the hotels/chain hotels, by formulating the platforms‘ listing terms and conditions in an objective manner,” it added.

MMT-Go has also been directed to provide transparent disclosures on its platform as regards the properties not available on its platform, either on account of termination of the contractual arrangement with any hotel/chain hotel or by virtue of exhaustion of quota allocated to MMT-Go by such hotel/chain hotel.