wordpress blog stats
Connect with us

Hi, what are you looking for?

CCI orders MakeMyTrip to relist Treebo, FabHotels properties: Report

The Competition Commission of India (CCI) has directed MakeMyTrip to allow budget hotel companies Treebo and FabHotels to relist their properties on its platforms, The Economic Times reported. The order came as part of an ongoing investigation into MakeMyTrip’s alleged abuse of its dominant position towards the competitors of its partner Oyo.

MMT-Go’s (MakeMyTrip and Goibibo) delisting of the travel chains had affected competition by denying them access to distribution, CCI reportedly said. Though the case in still ongoing and the CCI said that nothing in its interim order shall tantamount to a final opinion, it noted that the contractual commitment between MakeMyTrip and Oyo may tip the competition landscape in the two companies’ favour. It also reportedly noted that MakeMyTrip’s agreement with Oyo was conditioned on removing Treebo and FabHotels’ properties since they were Oyo’s competitors.

MakeMyTrip had delisted the properties of Treebo and FabHotels in 2018 after signing a commercial agreement with Oyo.

The CCI’s probe into MakeMyTrip has been ongoing since October 2019, when it had ordered an investigation based on a complaint filed by the Federation of Hotels and Restaurant Associations of India (FHRAI). A few months later, in February 2020, the CCI clubbed this investigation with another probe into alleged abuse of dominance by MakeMyTrip and Oyo Hotels, on the basis of a complaint filed by Treebo Hotels (operated by Rubtub Solutions Pvt. Ltd.).

Among the various issues that Treebo raised was the commercial arrangement between Oyo and MMT, wherein  MakeMyTrip agreed to remove Oyo’s competitors, including Treebo, from its platform. Treebo had compained that MakeMyTrip imposed price restrictions on Treebo’s partner hotels via a Chain Agreement, under which Treebo was disallowed from listing its properties at cheaper rates on MakeMyTrip’s competitors Booking.com and Paytm. In addition, Treebo said MakeMyTrip restricted it from listing properties on Booking.com and Paytm for 72 hours and 30 days prior to check-in for hotels in major cities.

Advertisement. Scroll to continue reading.

While clubbing both probes in February 2020, the CCI had recognised that Treebo’s first two complaints are similar to those examined against Oyo and MakeMyTrip in the October 2019 probe order. The CCI found both players to be dominant, and indulging in abusive practices by denying market share via a commercial agreement between them, price and room parity restrictions, predatory pricing, etc.

Read more 

Written By

I cover health, policy issues such as intermediary liability, data governance, internet shutdowns, and more. Hit me up for tips.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The Delhi High Court should quash the government's order to block Tanul Thakur's website in light of the Shreya Singhal verdict by the Supreme...

News

Releasing the policy is akin to putting the proverbial 'cart before the horse'.

News

The industry's growth is being weighed down by taxation and legal uncertainty.

News

Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.

News

Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ