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India’s competition watchdog has directed MakeMyTrip to allow Treebo and FabHotels to relist their properties on its platforms, granting the two budget hotel chains interim relief amid an ongoing probe into alleged abuse of its dominant position by the online travel portal towards the competitors of its partner Oyo. In an order on Tuesday, the Competition Commission of India (CCI) directed MakeMyTrip to comply with the interim directions with immediate effect, stating that the conduct of MMT-Go (MakeMyTrip & Goibibo) in delisting franchises of the hotel chains had affected competition by denying them access to distribution.
“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 some logistic support from them, has affected competition in the market by denying access to an important channel of distribution through foreclosure,” said the order.
The interim order, which said nothing stated in it shall tantamount to a final opinion on the merits of the case, added that the continuation of exclusionary contractual commitment between MakeMyTrip and Oyo may change the competitive landscape and tip the markets in favor of the two companies. MakeMyTrip said it was examining the order and would take the necessary steps after consulting its counsels.
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“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,” a MakeMyTrip spokesperson said.
