New Delhi2 days ago
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The Competition Commission of India (CCI) has imposed a fine of over Rs 392 crore on MakeMyTrip-Goibibo (MMT-go) and OYO. CCI imposed penalty on both the firms for doing unfair business. MakeMyTrip used to keep OYO at the top of the search results for its platform. Due to this the rest of the hotel partners were being harmed.
CCI imposed a fine of Rs 168.88 crore on OYO, while Rs 223.48 crore on MakeMyTrip-Goibibo (MMT-go).
Penalty imposed due to this deal
MMT-go was accused of using an agreement with its hotel partner to impose restrictions. MMT-go has negotiated with all its hotel partners that they will have to pay the same rent for their room on MMT-go as on the rest of the website or on their own website. Hoteliers could not rent their rooms on any other platform for less.
The CCI has also ordered MMT-go to change its agreement with the imposition of fine. CCI said that the company cannot bind its hotel partner in this manner under the agreement. The company will have to give equal opportunities to all the companies present on its platform.
Why was the fine imposed on OYO?
CCI also fined hospitality firm OYO along with MMT-go. CCI found in the investigation that MMT-go used to rank OYO hotels at the top compared to other companies on its platform. By doing this, the rest of the companies in the industry were also affected and the market was affected.
Investigation started 3 years ago
The CCI had started the investigation of this case related to MMT-go in October 2019. As soon as the investigation of the case was over, the accused companies were fined. Let me tell you, MakeMyTrip had included the Ibibo Group in 2017.