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SUB: CCI IMPOSES RS. 392 CRORE PENALTY ON GO-MMT AND OYO FOR ANTI-COMPETITIVE BUSINESS PRACTICES
Dear Member,
We are extremely delighted to inform you that, based on the complaint filed by FHRAI, the Competition Commission of India (CCI) has slapped a total fine of Rs. 392 Cr on Go-MMT and OYO for their alleged anti-competitive and unfair business practices, that has been adversely affecting the hospitality industry for a long time.
It is pertinent to highlight that in 2019 FHRAI had filed complaints to the CCI against Go-MMT and Oyo for their alleged malpractices that virtually denied any level-playing field to the hotels. Based on our complaints, CCI identified a case for investigations into both the entities’ business practices under Section 26(1) of the Competition Act, 2002. After the investigation, the CCI found 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.
Apart from the penalty, the CCI also directed Go-MMT to modify its agreements with hotels to remove the price and room availability parity obligations with respect to other online travel portals.
We must recognize this as one of the biggest victories of the hospitality industry against the dominance and ill practices of the above-mentioned OTAs.
FHRAI is pledged to work towards creating a conducive and business-friendly environment for the hospitality sector and look forward to continuous support and patronage from our members.
Wishing all the members a Very Happy & Prosperous Diwali!
With best regards,
Jaison Chacko
Secretary General
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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