Budget hotel chain provider Treebo has also filed a complaint against both online travel agency MakeMyTrip and rival Oyo, whose contractual relationship is already being investigated by the Competition Commission of India (CCI).
The CCI probe is for adverse impact on competition in the market. The complaint by Treebo, a five-year-old startup co-founded by former Myntra executives, will be included in the ongoing inquiry. CCI is investigating if MakeMyTrip abused its dominant position in online hotel booking in India for predatory pricing and high commissions.
The existing probe has been ongoing since October based on a complaint filed by the Federation of Hotel and Restaurant Associations of India (FHRAI). Treebo has alleged that MakeMyTrip is a dominant player in its market with a 63% share and its “vertical integration” with Oyo creates “significant barriers of entry given the network effects”. The complaint says Oyo controls 89% of the budget and franchised hotel space.
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