DELHI - India’s competition regulator has launched an investigation into allegations that hotel-booking service MakeMyTrip gives special treatment on its platform to hotel chain Oyo.
There is a "prima facie case for investigation" against MakeMyTrip and Oyo for alleged violations of rules barring uncompetitive agreements between parties, the Competition Commission of India (CCI) said in an order dated Oct. 28.
The investigation follows a complaint from the Federation of Hotel and Restaurant Associations of India (FHRAI), which said agreements between Oyo and Nasdaq-listed MakeMyTrip were restricting market access to Indian hotel chains such as Fab Hotels and Treebo, according to the CCI's order.
Both Oyo and MakeMyTrip allow guests to book hotels through their mobile apps while charging hotels a fee on room revenue, Oyo also franchises its brand and offers standardised amenities at hotels on its network.
Launched in 2013, OYO is India’s largest hospitality company. Its network currently spans over 230 Indian cities. Oyo’s Asia Pacific portfolio covers 952,495 rooms.
Oyo said in a statement it was reviewing the order and would cooperate with the CCI's investigation, while MakeMyTrip said the allegations were “unfounded”.
The FHRAI also claimed Oyo and MakeMyTrip are hurting competition by offering deep discounts and charging "exorbitant" fees from hotels.
On its website, Oyo notes, “hotel-owners partnering with OYO see a significant increase in occupancy levels, get access to the world’s first tablet-based property management apps and become part of a brand recognised and loved by travellers nationwide.”