Treebo becomes a part of the CCI probe against MakeMyTrip and Oyo
Category: #headlines  By Anchal Solanki  Date: 2020-02-25
  • share
  • Twitter
  • Facebook
  • LinkedIn
Treebo becomes a part of the CCI probe against MakeMyTrip and Oyo
  • The complaint filed by Treebo will be an addition to the current inquiry
     
  • Treebo faced challenges in registering its properties on platforms due to exclusivity arrangements

Treebo, a chain of budget hotels, has reportedly registered a complaint against Oyo, its rival and MakeMyTrip, the leading online travel agency. Both companies are already under investigation for their contractual relationship by the CCI (Competition Commission of India).

Apparently, the probe by the CCI is due to the harmful impact that the companies had on competition in the market. The complaint filed by the startup, Treebo, will be an addition to the current inquiry. CCI has been investigating if MakeMyTrip misused its leading position within online hotel booking across India for exploitative pricing as well as high commission.

According to Treebo, MakeMyTrip has been a central player in the industry with a share of 63%. Its vertical partnership with Oyo has formed major barriers of entry considering the effects the network has. The complaint states that Oyo has been controlling about 89% of franchised hotels and budget space.

The prima facie order passed for review does not have a binding or a final observation yet. MakeMyTrip stated that the company is confident of being compliant with the principles and laws of competition while also offering its consumers and partners the best services.

After Treebo relisted itself on MakeMyTrip, the company has faced several challenges in listing its properties on different platforms such as Paytm as well as Booking at a much lower price on account of its exclusivity arrangement.

Treebo was also not allowed to list all its properties on Booking and Paytm for about three days prior to check-in across 29 cities and for 30 days for another 25 cities. About 65-70% of the business within the budget hotel chains tend to happen three days prior to check-in dates.

Seemingly, the CCI investigations were also joined by other industry players present within the budget hotel space.

 

Source Credit- https://timesofindia.indiatimes.com/business/india-business/treebo-joins-ccis-probe-into-oyo-makemytrip/articleshow/74291690.cms

  • share
  • Twitter
  • Facebook
  • LinkedIn

About Author

Anchal Solanki

Anchal Solanki    

A civil engineer by qualification, Anchal Solanki forayed into the domain of content writing in the midst of her graduation, embarking on the career path of a successful freelancer. Equipped with a short-term experience in market research, Anchal currently writes news...

Read More >>

More News By Anchal Solanki

Proton to lend support to Malaysia’s Health Ministry to fight COVID-19
Proton to lend support to Malaysia’s Health Ministry to fight COVID-19
By Anchal Solanki

Amid the growing crisis caused by the coronavirus pandemic, a plethora of companies from almost every industrial sector are coming forward to make a contribution towards the global fight against COVID-19. Among those, the automotive sector is one of ...

Global Mobile Satellite Services Market: Key Strategies to Use to Dominate Globally 2020-2026
Global Mobile Satellite Services Market: Key Strategies to Use to Dominate Globally 2020-2026
By Anchal Solanki

An in-depth understanding of the Mobile Satellite Services Market has been provided in this research study. The report analyses the Mobile Satellite Services Market in terms of numerous parameters, such as growth drivers influencing the commercializa...

Global Terrestrial Trunked Radio Market: Factors Helping to Maintain Strong Position Globally 2020-2026
Global Terrestrial Trunked Radio Market: Factors Helping to Maintain Strong Position Globally 2020-2026
By Anchal Solanki

Titled ‘Global Terrestrial Trunked Radio Market Research Report’, the report is complete with an elaborate research undertaken by prominent analysts and a detailed analysis of the global industry place. The study is inclusive of a well-el...