CCI imposes penalty of over Rs 392 crore on online travel firms

Tags: National Economy/Finance National News

The Competition Commission of India(CCI) on 19 October, 2022 slapped penalties totalling more than Rs 392 crore on online travel firms MakeMyTrip, Goibibo and hospitality services provider OYO for unfair business practices.

Important facts

• A fine of Rs 223.48 crore has been slapped on Make My Trip-Goibibo (MMT-Go) and Rs 168.88 crore on OYO. 

• MMT-Go was alleged to have enforced price parity in its agreements with hotel partners.

• Under such agreements, hotel partners were not allowed to sell their rooms on any other platform or on their online portal at a price lower than the price at which it was being offered on the platforms of the two other entities.

• It was also alleged that MMT preferred OYO on its platform, thereby denying market access to other players.

• The CCI had ordered a detailed inquiry into the matter in October 2019.

• MakeMyTrip (MMT) acquired Ibibo Group Holding in 2017.

Competition Commission of India (CCI) 

• The Competition Commission of India (CCI) is the chief national competition regulator in India. 

• It was set up under the Competition Act, 2002.

• It comes under the Ministry of Corporate Affairs.

• It promotes healthy market competition and prevents activities that have an adverse effect on competition in India. 

• CCI also approves merger and acquisitions of companies in India so that the  two merging entities do not dominate the market unfairly

• Headquarter - New Delhi

• Current Chairman - Ashok Kumar Gupta