The competition commission of India ordered a detailed inquiry against OYO and MakeMyTrip (MMT) for allegedly being involved in anti-competitive business practices.
“The commission is of the view that prima facie a case of contravention against MMT for abuse of dominant position… is made out on account of all the three allegations analysed supra,” the CCI said.
The complaint was registered by Rubtub Solutions Pvt Ltd, which comes under Treebo Hotels in India and is responsible for franchising services to budget hotels.
According to the complaint, Treebo and its hotels are not being included in MakeMyTrip’s platform due to the arrangement between MMT and OYO.
Also, MMT is also alleged to have price parity restriction on Treebo partner hotels which restricted it from listing the properties to Booking.com and Paytm at a better rate.
As per the complaint, OYO has abused its dominant power by entering into an anti-competitive vertical arrangement with MMT thus denying market access to it.
Hence, the Commission on prima facie finding on relevant provisions of the Competition Act directed its investigation arm to conduct a detailed probe.