India Orders Detailed Probe Against MakeMyTrip, Oyo

India’s Competition Commission on Monday, February 24, ordered a detailed probe against MakeMyTrip (MMT) and Oyo for allegedly indulging in unfair business practices after a complaint was filed by the operator of Treebo Hotels, reported Bloomberg. 

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 a 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, a competitor to Oyo. Exclusion of Treebo and its partner hotels from listing on MMT platform pursuant to the commercial arrangement between the latter and Oyo, price parity restrictions on the platform and exclusivity condition on Treebo are the three main issues raised by the complainant, as per the watchdog. 

In a 13-page order, the Competition Commission of India stated 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 analyzed.” it noted. 

Full Content: Bloomberg

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