Softbank-backed Oyo hotels, MakeMytrip to face probe in India for alleged violations

Softbank-backed Oyo hotels, MakeMytrip to face probe in India for alleged violations
Reports suggest that the body complained about Oyo receiving preferential treatment from MakemyTrip on its platform, thereby stifling competition
Published: 31 October 2019 - 5:30 a.m.
By: Priyanka Praveen
India has opened an investigation into claims that Oyo Hotels and Rooms and hotel-booking platform MakeMyTrip are engaged in practices to cut-down competition.

Investigations were reportedly launched after the Competition Commission of India (CCI) received complaints from the Federation of Hotel & Restaurant Associations of India.

Reports suggest that the body complained about Oyo receiving preferential treatment from MakemyTrip on its platform, thereby stifling competition.

According to a report by India’s Financial Times (FT), the competition watch-dog in India said that it found grounds for an investigation into the allegations that the two parties entered an agreement that gave Oyo preferential treatment on the booking platform.

In addition to this investigation, the CCI is also looking into allegations about MakeMyTrip “artificially created gaps in supply and demand and changed prices accordingly”, FT reported.

Even as Oyo continues to expand across the world, the company has been facing issues in India.

In September, an Indian hotelier filed a case against Ritesh Agarwal, founder of India’s Oyo Hotels on charges of fraud and cheating. The hospitality group had denied all the charges.

Earlier in June, Oyo threatened to take legal action against groups in India for trying to disrupt its business after around 67 partner hotels went on a strike for two days.

Hotelier Middle East has reached out to Oyo for a comment. The copy will be updated when officials get back.

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