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DIRECTIONS NEED TO BE COMPLIED BY GO-MMT AS PER CCI ORDER DATED 19TH OCTOBER 2022

01 th May 2023

The Managing Directors/CEO's/Owners/Director/Partners/General Managers
All FHRAI Members

CC: All Members of the Executive Committee
All Regional Associations
President FHRAI

SUB: DIRECTIONS NEED TO BE COMPLIED BY GO-MMT AS PER CCI ORDER DATED 19TH OCTOBER 2022

Dear Member,

As you are aware, pursuant to the complaints filed by FHRAI, the Competition Commission of India had held Go-MMT and OYO guilty of anti-competitive activities and imposed penalties of Rs.223.5 crore and Rs.168 crore on Go-MMT and Oyo respectively, vide an order dated 19th October 2022.

The Commission in its order observed that besides imposing monetary penalty, it is imperative to ensure an environment that supports fair competition amongst the OTAs as well as amongst the franchisee service providers, which will ultimately benefit consumers and the independent hotels in the long run.

Towards that end, the Commission directed MMT-Go to undertake the following corrective measures and submit a compliance report within 60 days of the said order:

  • MMT-Go is directed to suitably modify its agreements with hotels/chain hotels, to remove/abandon the price and room availability parity obligations imposed by it on its hotel/chain hotel partners with respect to other OTAs.
  • MMT-Go is directed to modify its agreement with hotels/chain hotels, to remove/abandon the exclusivity conditions that exist inter-alia in the form of D minus clause.
  • MMT-Go is directed to provide access to its platform on a fair, transparent and non-discriminatory basis to the hotels/chain hotels, by formulating the platforms’ listing terms and conditions in an objective manner.
  • MMT-Go will notify all its hotel/chain hotel partners, about the aforesaid modifications.
  • MMT-Go is directed to provide transparent disclosures on its platform as regards the properties not available on its platform, either on account of termination of the contractual arrangement with any hotel/chain hotel or by virtue of exhaustion of quota allocated to MMT-Go by such hotel/chain hotel. Illustratively, for properties listed on MMT-Go but sold out on the said portal by virtue of exhaustion of quota allocated to MMT-Go, may specify ‘sold out on MMT-Go portal’; similarly, properties continuing to be appearing on MMT-Go portal, despite termination/expiry of listing arrangement should be removed from the portals and in the interregnum with a ‘not available on MMT-Go portal’ specification.


As per the directions of the CCI, MMT-Go is liable to comply with the above directions and notify the hotel partners accordingly. The members are hereby informed to take note that of this very crucial direction of the CCI and inform us about any incident of non – compliance by MMT-Go.

With best regards,

Jaison Chacko
Secretary General
_____________________________________________________
The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com, Website: www.fhrai.com

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THE FEDERATION OF HOTEL & RESTAURANT
ASSOCIATIONS OF INDIA

Address:

B-82, 8th Floor, Himalaya House, 23,
K. G. Marg, New Delhi-110 001

Telephone: 011-40780780

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E-mail: fhrai@fhrai.com