The Competition Commission of India (CCI) has fined MakeMyTrip, Goibibo and OYO for anti-competitive practices.
In a release the regulator says MakeMyTrip and its subsidiary Goibibo (MMT-Go) have been fined for abusing a dominant position as well as having an anti-competitive arrangement with OYO.
The inquiry was for the period from 2017 to 2020, and the CCI examined price and room availability parity obligations that online travel agencies impose on hotels as well as how they are used in conjunction with exclusivity clauses and deep discounting strategies.
The regulator found that these elements used together reinforced MMT-Go’s dominant position.
Subscribe to our newsletter below
It also looked at an allegation regarding misrepresentation of information by the online travel agency, such as putting "sold out" against properties, and concluded that this could lead consumers to assume the property was sold out across all channels.
In addition to a number of behavioral changes that the commission has imposed on MMT-Go, it has also fined the OTA $27 million.
Meanwhile, OYO is facing a $20 million fine, with the regulator finding that an understanding between it and MMT-Go had "adversely affected competition."
A spokesperson for OYO said it was reviewing the CCI order "in detail."
"Most OYO guests book directly through our app and website, while we continue to work with OTAs as distribution partners. OYO believes that our business practices and conduct comply with all applicable laws and we will take all the necessary steps to explain our position in the appropriate forums," the company says.
PhocusWire has contacted MMT for comment.