India regulator fines MakeMyTrip, Oyo for anti-competitive conduct (updated)

MakeMyTrip

19/10/2022 15:25

(Adds details from order, background)
       BENGALURU, Oct 19 (Reuters) - 
    India's competition regulator said on Wednesday that it had
fined online hotel-booking companies MakeMyTrip Ltd  MMYT.O  and
Goibibo and IPO-bound hotel chain Oyo a combined $47 million for
anti-competitive behaviour. 
  
        The Competition Commission of India (CCI) has been
investigating the companies since 2019 following allegations by
a hotel body that MakeMyTrip gave special treatment to
SoftBank-backed  9984.T  Oyo on its platform.
    The CCI has directed MakeMyTrip and Goibibo (MMT-Go) to
amend their market behaviour after fining them about $27
million. Oyo was fined $20 million.
        The Federation of Hotel and Restaurant Associations of
India (FHRAI) had alleged that agreements between Oyo and
Nasdaq-listed MakeMyTrip to give preferential treatment to Oyo
on its platform were restricting market access to competitors
such as Fab Hotels and Treebo.
  
        "The Commission is of the view that the commercial
arrangement between OYO and MMT-Go which led to the delisting of
FabHotels, Treebo and the independent hotels, which were
availing the services of these franchisors, was
anticompetitive," the CCI said in its order.
  
        The FHRAI had also alleged that Oyo and MakeMyTrip were
hurting competition by offering deep discounts and charging
"exorbitant" fees from hotels.
  
        MakeMyTrip and Oyo did not immediately respond to
Reuters' request for comment.    
 (Reporting by Chris Thomas in Bengaluru; Editing by Arun
Koyyur)
 ((chris.thomas@thomsonreuters.com; +91 80 6210 0487;))