CCI Slammed Penalties Worth ₹392 Crores On MMT-Go And OYO Over Unfair Trade Practices

by Vinita Jain
CCI Slammed Penalties Worth ₹392 Crores On MMT-Go And OYO Over Unfair Trade Practices

The Competition Commission of India (CCI) fined a total of ₹392 crores on the popularly known agencies for unfair trade practices. On Wednesday, CCI imposed penalties on MakeMyTrip, Goibibo, and OYO rooms. A 131-page order came after CCI found that the hospitality and travel agencies were involved in unfair trade practices.

The travel aggregators MakeMyTrip and Goibibo have been asked to pay a penalty of ₹223.48 crores. And, a fine of ₹168.88 crores on the hospitality firm OYO. This is the highest amount sanctioned by CCI on any digital agency ever.

Here’s How Companies Reacted To The Allegations Of Unfair Trade Practices

Unfair Trade Practices
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According to reports, OYO is reviewing CCI’s orders of unfair trade practices in detail and will take all the essential steps to clarify their position with the fitting forums. However, on the other hand, MakeMyTrip believes that this order is going to have a negative impact on the firm. But the company indicated that the CCI Ordinance is subject to appeal, but did not disclose whether it intends to appeal.

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On the travel aggregators, the allegations claim that they imposed price parity agreements with other hotels. Basically, price parity means the hotels can’t sell their rooms on any other online platform or on their own portal at a low price.

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CCI Orders OYO And MMT-Go To Submit The Required Amounts Within 60 Days

Unfair Trade Practices
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In addition to the fine, CCI will also direct MMT-Go to reasonably amend its contract with the hotel/chain hotel to compensate for the rate and availability charges. The charges it has imposed on other hotels in connection with other OTAs.

Due to the penalties imposed on both OYO and MMT-Go, CCI ended the brawl and deemed the agreement between OYO and the aggregator illegal. So, the CCI wants MMT-Go and OYO to submit their respective penalty amounts within 60 days of receipt of the current order as provided by the law.

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Source: Financial Express

Cover image courtesy: Pexels