The National Company Law Appellate Tribunal on Tuesday admitted Oyo’s petition challenging the Competition Commission of India’s order that imposed a fine of ₹169 crore against the company. The appeal, however, has been admitted subject to OYO depositing a 10% of the total penalty which is ₹16.9 crore that is levied within six weeks, an order by the tribunal said.
A bench led by Justice Rakesh Kumar has posted the matter for hearing in April 2023.
In October, the fair trade regulator the Competition Commission of India (CCI) has levied a penalty of ₹223.5 crore on MakeMyTrip India-Ibibo (MMT-Go) for abuse of its dominant position in online travel booking space and entering into an anti-competitive tie-up with OYO, a low-cost hotel chain group.
The competition watchdog had also levied a ₹169 crore penalty on OYO. Apart from the penalty, the CCI also directed MMT-Go to modify its agreement with hotels to remove the price and room availability parity obligations with respect to other online travel portals.The case was filed by Federation of Hotel & Restaurant Associations of India (FHRAI).
CCI had ordered both companies to deposit the penalty within two months from the receiept of the order. Aggrieved by the CCI’s order Oyo then filed a suit before the NCLAT to seek an interim relief.
The NCLAT also stated that the Oyo’s petition requires hearing and that records of CCI on the matter by the end of January 2023.
Additionally, the appellate tribunal also granted liberty to counsels of both the parties to complete the pleadings which must be concluded before the first week of February 2023.
Essentially, the competition regulator had initiated an investigation against the two – MMT-Go and OYO — following separate complaints filed by the Federation of Hotel & Restaurant Associations of India (FHRAI), a representative body of the hospitality industry in India, and two budget hotel brands FabHotels and Treebo Hotels.
The complainant claimed that MMT-Go had required price parity in its contracts with hotel partners, prohibiting the latter from selling their rooms for less than what they are charging on MMT-platform Go’s at any other online travel agencies or on their own portal. Although MMT-Go reserves the right to alter the prices at any time.
More important , the hotel owners too cited that MMT-Go indulged in predatory pricing by offering hotel rooms at less than the average room rate. MakeMyTrip was offering deep discounts to customers, forcing out smaller travel portals, as per the complainants.
Download The Mint News App to get Daily Market Updates.
More
Less
For all the latest world News Click Here
