The Competition Commission of India (CCI) fined online travel aggregators MakeMyTrip and Goibibo (MMT-Go) and hotel chain Oyo a combined ₹392 crore ($47 million) for anti-competitive conduct on October 18th. The antitrust watchdog has also imposed behavioural sanctions on the two travel aggregators. CCI imposed the monetary penalties at the rate of 5 percent of the companies' relevant turnovers, which amounts to ₹223 crore for MMT-Go and ₹169 crore for Oyo. MakeMyTrip acquired Ibibo Group in 2017, but both companies continue to operate separate platforms. CCI was investigating MMT-Go and Oyo based on complaints from 2019 and 2020 respectively filed by the Federation of Hotel and Restaurant Associations of India (FHRAI) and Treebo Hotels, alleging that the MMT-Go was abusing its dominant position through price parity obligations and deep discounting. They also alleged that MMT-Go had anti-competitive arrangements with Oyo, which resulted in the delisting of Oyo's competitors from the two online portals in 2018. Why does this matter: This long-running investigation has resulted in CCI addressing some of the nuances in the online travel aggregation market, such as what the relevant market is. These will probably be used as a precedent for future antitrust cases in this industry. Relevant market and market dominance CCI noted that determining the relevant market was "the most contentious issue throughout the proceedings in this matter" but that it has concluded that online and offline travel booking are not part of the same market and even within the online segment, online travel aggregators constitute a separate relevant product market and…
Summary: India’s Competition Watchdog Fines MakeMyTrip, Goibibo, and Oyo
CCI was investigating MMT-Go and Oyo based on complaints filed in 2019 and 2020 by the Federation of Hotel and Restaurant Associations of India and Treebo Hotels.
- Meta to give advertisers more control using AI and content filters June 2, 2023
- Transparency Report: Here’s all Facebook, Instagram, Twitter and Google had to say about user complaints in April June 2, 2023
- Views: Informed Consent—Fiction, Not Fact June 2, 2023
- Instagram explains how it ranks content on the platform June 2, 2023
- Here’s what online streaming industry thinks about Indian telecom regulator’s consultation on regulatory convergence June 2, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Is it safe to consider all "publicly available data" as public?
PhonePe launched an e-commerce buyer app for ONDC called Pincode. We, however, believe that it should also launch a seller app.
Amazon announced that it will integrate its logistics network and SmartCommerce services with the Open Network for Digital Commerce (ONDC).
India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?
After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
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...
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...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
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...
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...