Rs 392-cr penalty on MakeMyTrip, OYO

New Delhi, October 19

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The Competition Commission of India (CCI) on Wednesday slapped penalties totalling over Rs 392 crore on online travel firms MakeMyTrip, Goibibo and hospitality services provider OYO for unfair business practices.

A fine of Rs 223.48 crore has been slapped on MakeMyTrip-Goibibo (MMT-Go) and Rs 168.88 crore on OYO, according to a 131-page order.

Unfair practices

• It was alleged that MakeMyTrip-Goibibo imposed a price parity in their agreements with hotel partners
• Under such pacts, the hotel partners are not allowed to sell their rooms on any other platform or on its own online portal at a price below the price at which it is being offered on the two entities’ platforms

Among others, it was alleged that MMT-Go imposed a price parity in their agreements with hotel partners. Under such pacts, the hotel partners are not allowed to sell their rooms on any other platform or on its own online portal at a price below the price at which it is being offered on the two entities’ platforms.

Besides imposing penalties, the CCI has directed MMT-Go to “suitably modify its agreements with hotels/chain hotels to remove/abandon the price and room availability parity obligations imposed by it on its hotel/chain hotel partners with respect to other OTAs (Online Travel Agencies)”.