CCI approves FabHotels' request in FHRAI-Go-MMT-Oyo matter

NEW DELHI: The Competition Commission of India (CCI) has approved the request of FabHotels of being made a party in the FHRAI-GO-MMT-Oyo matter by approving its impleadment application in the case. ET has seen a copy of this CCI order dated February 5 which approved the impleadment application of FabHotels in the matter.

The CCI in October, had ordered an investigation on a complaint by industry body Federation of Hotel and Restaurant Associations of India (FHRAI) that accused hospitality company Oyo and online travel agency Go-MMT of destroying competitive pricing in the market by abusing their dominant positions.

While ordering an investigation in October, the CCI said if FabHotels and Treebo were excluded following an agreement between Oyo and MMT to not list the closest competitors of Oyo on the platform, then it might potentially contravene the provisions of

the Competition Act 2002.

As per the CCI order, Following the ordering of investigation by CCI which is currently ongoing, FabHotels filed for impleadment in the matter on January 23 stating it has substantial interest in the outcome of these proceedings. As per the CCI order, FabHotels also alleged that the commercial agreement between Go-MMT and Oyo which took effect in 2018 has created entry barriers and has foreclosed the market for competitors of Oyo like FabHotels.

The CCI in its order dated February 5, said the commission is satisfied that FabHotels has a substantial interest in the outcome of the proceedings and that it is necessary to allow it to present its opinion in the matter for a meaningful investigation. The CCI has directed FabHotels to serve a public version of its impleadment application to all parties in the matter within ten days of the receipt of the February 5 order.


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