CCI to probe Oyo, MakeMyTrip for alleged violations

An Indian regulator has ordered an investigation into allegations that hotel-booking service MakeMyTrip Ltd gives special treatment to SoftBank-backed hotel chain Oyo on its platform, stifling competition in the industry.

There is a “prima facie case for investigation” against MakeMyTrip and Oyo for alleged violations of rules barring uncompetitive agreements between parties, the Competition Commission of India (CCI) said in an order dated Oct. 28.

The order follows a complaint from the Federation of Hotel and Restaurant Associations of India (FHRAI), an industry body.

Both Oyo and MakeMyTrip allow guests to book hotels through their mobile apps while charging hotels a fee on room revenue, but Oyo also franchises its brand and offers standardized amenities at hotels on its network.