CCI directs MakeMyTrip to relist Treebo, FabHotels: Report
The competition watchdog in February initiated an probe against MakeMyTrip and budget hotels chain Oyo over alleged unfair business practices.
March 10, 2021 / 11:21 AM IST
The Competition Commission of India (CCI), on March 9, asked online travel portal MakeMyTrip to allow Treebo and FabHotels, rivals of Oyo, to relist their properties on the platform.
The competition watchdog in February initiated a probe against MakeMyTrip and budget hotels chain Oyo over alleged unfair business practices.
The CCI said the conduct of MMT-Go (MakeMyTrip & Goibibo) in delisting franchises of the hotel chains had hurt competition in the market, The Economic times reported.
Moneycontrol could not independently verify the report.
The CCI directed MakeMyTrip to comply with the interim directions with immediate effect.
"...the conduct of MMT-Go in delisting and continuing to delist franchisee service providers, specifically FabHotels and Treebo, as well as the budget hotels which were availing (of) some logistic support from them, has affected competition in the market by denying access to an important channel of distribution through foreclosure," the order said, as quoted by the publication.
A MakeMyTrip spokesperson told the publication that the company is examining the order and will take the next steps after consulting with its counsel.
"Subsequent to CCI’s prima facie orders, both Fab and Treebo had filed an interim application requesting relisting on the Go-MMT platforms, pending the final outcome of the ongoing investigation. The CCI has allowed the interim application stating that the interim order does not tantamount to the final expression of opinion on the merits of the case," the spokesperson said.
Treebo and FabHotels declined to comment when contacted by The Economic Times. An Oyo spokesperson said the company had not received the order and was unaware of it.
MakeMyTrip delisted Treebo and FabHotels in 2018 after signing a commercial agreement with Oyo, the report said.