India’s competition watchdog allows FabHotels to join MakeMyTrip, OYO investigation
India’s Competition Commission investigating anti-competitive complaints against MakeMyTrip, Goibibo and OYO has allowed rival budget hotel chain FabHotels to have its say.
FabHotels filed an application with the CCI to be involved which has now been granted.
Last year the Federation of Hotel and Restaurant Associations of India filed a complaint against a partnership between MakeMyTrip, Goibibo and OYO alleging they have created a monopoly in the online travel agency market.
The FHRAI alleged that the Goibbo-MMT combined business gives preferential treatment to OYO, at the expense of other hotel chains and individual hotels.
They allegedly conspired to not list any properties of FabHotels and another budget chain Treebo Hotels.
The CCI said the investigation centred on the issue of ‘alleged denial of market access to the competitors of OYO consequent to the commercial agreement between MMT and OYO.’
The CCI said FabHotels has a substantial interest in proceedings and that its portfiloi of hotels had in fact been removed from MakeMyTrip’s platforms.
The ruling gives FabHotels access to relevant documents and submissions made in the course of the investigation.
The FHRAI failed in part with its complaint over a perceived technically but says it feels vindicated in its campaign for legal action.
"We will be shortly submitting more evidence of dominance and misdemeanours on the part of MMT and OYO to the CCI investigation team. We will highlight the illegal actions of these aggregators, whereby local entrepreneurs and hotels are being destroyed by OTAs," said Pradeep Shetty, joint honorary secretary of FHRAI.
FHRAI’s original complaint alleged monopolistic practices, predatory pricing and high commissions.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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