Competition Commission of India fined ₹392 cr penalties on OYO, MakeMyTrip and Goibibo for unfair business practices.
What is the Role of CCI?
CCI acts as a Competition Regulator in India, regulating the competition and consumer interest.
You can read more about the and powers here - moneycontrol.com
CCI acts as a Competition Regulator in India, regulating the competition and consumer interest.
You can read more about the and powers here - moneycontrol.com
Budget Hotels have a big Market in India
MakeMyTrip (Also listed on NYSE) is one of the largest hotel and travel booking platforms in India, acquired GoIbibo for around ₹12,000 Crore in 2016
MakeMyTrip (Also listed on NYSE) is one of the largest hotel and travel booking platforms in India, acquired GoIbibo for around ₹12,000 Crore in 2016
So what went wrong?
Reportedly MMT gave special treatment to OYO and delisted other similar hotels chain platforms like Fab Hotels and Treebo
This is precisely not a healthy competitive practice.
Then CCI took note and ordered an investigation in 2019.
Reportedly MMT gave special treatment to OYO and delisted other similar hotels chain platforms like Fab Hotels and Treebo
This is precisely not a healthy competitive practice.
Then CCI took note and ordered an investigation in 2019.
To understand the market, competition and opportunity better for OYO, FabHotels and Treebo
You can read this detailed and insightful piece (Case Study) by Rajat Singh
@rajatsinghlonging/fabhotels-vs-oyo-vs-treebo-products-review-e397157c6a4a" target="_blank" rel="noopener" onclick="event.stopPropagation()">medium.com
You can read this detailed and insightful piece (Case Study) by Rajat Singh
@rajatsinghlonging/fabhotels-vs-oyo-vs-treebo-products-review-e397157c6a4a" target="_blank" rel="noopener" onclick="event.stopPropagation()">medium.com
To put things in perspective, imagine Google offering selective treatment to a few blogs/websites (Not ads, but special arrangements) while delisting others.
Unfair right?
Unfair right?
Exactly why last year, CCI asked MMT to relist Treebo and FabHotels in an Interim order and not misuse MMT dominance in the Market
This was a relief to other players
economictimes.indiatimes.com
This was a relief to other players
economictimes.indiatimes.com
After nearly 3 years, today CCI fined ₹223.48 crores on MakeMyTrip (MMT+GoIbibo) and ₹168.88 crores on OYO, in a 131-page order.
Apart from Deep Discounts, Price Parity was also a Major Concern
That means any Hotel Partners Registered with OYO and MMT can't sell their own hotels on their website or on any other platforms for less than the price they listed with OYO/MMT. That led to multiple disputes.
That means any Hotel Partners Registered with OYO and MMT can't sell their own hotels on their website or on any other platforms for less than the price they listed with OYO/MMT. That led to multiple disputes.
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