{"id":226247,"date":"2020-02-26T17:21:11","date_gmt":"2020-02-26T11:51:11","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=226247"},"modified":"2020-02-26T17:21:11","modified_gmt":"2020-02-26T11:51:11","slug":"cci-treebo-alleges-makemy-trip-oyo-for-abuse-of-dominant-position-entering-into-a-vertical-agreement-dg-directed-for-investigation","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/02\/26\/cci-treebo-alleges-makemy-trip-oyo-for-abuse-of-dominant-position-entering-into-a-vertical-agreement-dg-directed-for-investigation\/","title":{"rendered":"CCI | \u201cTreebo\u201d alleges \u201cMakeMy Trip\u201d &#038; \u201cOYO\u201d for abuse of dominant position &#038; entering into a vertical agreement \u2013 DG directed for investigation"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Competition Commission of India (CCI): <\/strong>The Coram comprising of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi, Members, while dealing with a case filed by Treebo Hotels against Make My Trip &amp; OYO held that,<\/p>\n<p style=\"text-align: justify;\"><strong>\u201cA <em>prima facie <\/em>case of contravention against MMT for abuse of dominant position under Section 4(2)(a)(i) and 4(2)(c) is made out and a case against MMT &amp; OYO for entering into a vertical arrangement having an AAEC in the market is also made out.\u201d<\/strong><\/p>\n<p style=\"text-align: justify;\">Informant alleged contravention of provisions of Sections 3 and 4 of the Competition Act, 2002 against MakeMyTrip India Pvt. Ltd. (MMT) and Oravel Stays Private Limited (OYO).<\/p>\n<p style=\"text-align: justify;\"><strong>Background<\/strong><\/p>\n<p style=\"text-align: justify;\">\u201cTreebo\u201d alleged \u201cMMT\u201d of abusing its dominant position in the relevant market for online intermediation services for booking of hotels in India.<\/p>\n<p style=\"text-align: justify;\">It has been stated that, Treebo was previously listing its budget hotels on MMT\u2019s platform in addition to the intermediation services provided by MMT, further with its acquisition of GO-Ibibo, MMT proposed to make a significant investment in Treebo, in exchange for Treebo listing its hotels exclusively on MMT\u2019s platform.<\/p>\n<p style=\"text-align: justify;\">Further proposal from MMT for investment in Treebo was turned into a threat, that if Treebo doesn\u2019t accept MMT\u2019s proposal, it would be removed from MMT\u2019s platform. Treebo claimed to have finally declined MMT\u2019s proposals for investment and exclusive listings. Thus all Treebo properties were allegedly removed from MMT\u2019s platform.<\/p>\n<p style=\"text-align: justify;\">Nearly after 6 months, MMT again decided to list Treebo back on MMT platform subject to Treebo entering into the <strong><em>\u2018Exclusivity Agreement\u2019 and \u2018Chain Agreement\u2019 <\/em><\/strong>with MMT and the said agreements were alleged to have been unfair\/anti-competitive.<\/p>\n<p style=\"text-align: justify;\">Through a notice of termination, the above-stated agreements were unilaterally terminated by MMT. As per Treebo\u2019s allegation, the agreements were terminated by MMT as a result of OYO\u2019s agreement with MMT wherein MMT agreed to remove OYO\u2019s competitors like Treebo from its platform.<\/p>\n<p style=\"text-align: justify;\">OYO\u2019s arrangement with MMT, dominant downstream intermediary, OYO considered being vertically integrated enterprise. Due to existence of network effects in such a market, there exist huge barriers to entry for any new player in the market.<\/p>\n<p style=\"text-align: justify;\">Treebo also claimed that MMT-GO and OYO renewed their commercial agreement with a specific provision to exclude Treebo and Fab Hotels from listing on MMT.<\/p>\n<p style=\"text-align: justify;\">Treebo alleged that MMT has contravened the provisions of Section 4(2) (c) read with Section 4(1) of the Act by unilaterally terminating agreement with Treebo and denying Treebo market access to large share of online customers who prefer to make their hotel bookings on MMT. MMT imposed arbitrary exclusivity condition on Treebo through the \u2018Exclusivity Agreement\u2019 entered into between MMT and Treebo, in contravention of provisions of Section 4(2)(a)(i) of Competition Act, 2002.<\/p>\n<p style=\"text-align: justify;\">Treebo has also brought the aforesaid allegations under Section 3(4) read with Section 3(1) of the Act as Treebo and MMT share a vertical relation. \u2018Exclusivity Clause\u2019 introduced by MMT caused <strong>Appreciable Adverse Effect<\/strong> on Competition in terms of Section 19(3) of the Act while creating entry barrier for new OTAs, driving out existing OTAs out of the market and there were no accrual benefits to the consumers.<\/p>\n<p style=\"text-align: justify;\">OYO abused its dominant position in the relevant market for \u2018<em>franchising services for budget hotels in India<\/em>\u2019 by entering into an anti-competitive vertical arrangement with MMT. By Imposing restrictive conditions on MMT, OYO and MMT\u2019s deal tantamount to \u2018refusal to deal\u2019 and violates Section 3(4) read with Section 3(1) of the Act.<\/p>\n<p style=\"text-align: justify;\"><strong>Analysis &amp; Decision<\/strong><\/p>\n<p style=\"text-align: justify;\">Commission held that restrictive arrangement between OYO and MMT, both of whom have considerable presence in their respective market segments, may lead to refusal to deal which may have adverse effects on competition.<\/p>\n<p style=\"text-align: justify;\">Parity Restrictions are anti-competitive and are to be directed to be investigated under Section 3(4) as well as Section 4 of the Act.<\/p>\n<p style=\"text-align: justify;\">With regard to imposition of exclusivity condition by MMT on Treebo, it appears to be unfair and hence exploitative under Section 4(2)(a)(i) of the Act, for the Treebo partner hotels as it denies them an opportunity to list on other platforms and to gains access to those platforms. The restriction also seems to be prima facie in contravention of Section 4(2)(c) of the Act.<\/p>\n<p style=\"text-align: justify;\">In view of the above, DG is directed to investigate the present matter. [Rubtub Solutions Pvt. Ltd v. MakeMyTrip India Pvt. Ltd. (MMT), Case No. 01 of 2020, decided on 24-02-2020]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Competition Commission of India (CCI): The Coram comprising of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi, Members, while <\/p>\n","protected":false},"author":8808,"featured_media":76441,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[37057,39772,39774,39773,39770,39769,39771],"class_list":["post-226247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-abuse-of-dominant-position","tag-appreciable-adverse-effect","tag-chain-agreement","tag-exclusivity-agreement","tag-makemytrip","tag-parity-restrictions","tag-treebo"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin 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their anti-competitive practices and abuse of dominant position","author":"Editor","date":"October 21, 2022","format":false,"excerpt":"\u00a0 \u00a0 Competition Commission of India: In a significant development, the Commission while deliberating upon the alleged contravention of Sections 3 and 4 of the Competition Act by MakeMyTrip, Goibibo and OYO, was of the view that the commercial arrangement between OYO and MakeMyTrip and Goibibo which led to the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/competition-commission-of-india.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/competition-commission-of-india.jpg?resize=350%2C200&ssl=1 1x, 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arise","author":"Sucheta","date":"August 27, 2015","format":false,"excerpt":"Competition Commission of India: \u00a0In a sigh of relief to DLF, a building giant already facing fair play litigations, the market competition regulator CCI closed a case alleging abuse of dominant position. The informants in the present case alleged that DLF compelled them to enter into one-sided and unfair Apartment\u2026","rel":"","context":"In &quot;Tribunals\/Commissions\/Regulatory Bodies&quot;","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":53701,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/06\/29\/allegations-of-abuse-of-dominant-position-against-nissan-motor-india-pvt-ltd-dismissed\/","url_meta":{"origin":226247,"position":3},"title":"Allegations of abuse of dominant position against Nissan Motor India Pvt. Ltd., dismissed","author":"Sucheta","date":"June 29, 2016","format":false,"excerpt":"Competition Commission of India (CCI): CCI has dismissed allegations of abuse of dominant position against Nissan Motor India Pvt. Ltd. in terms of after-sales service while observing that the issue raised in the information pertained to alleged deficiency in services and no case of contravention of the provisions of Section\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":97821,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/01\/06\/allegations-of-abuse-of-dominant-position-against-toyota-kirloskar-motor-pvt-ltd-dismissed\/","url_meta":{"origin":226247,"position":4},"title":"Allegations of abuse of dominant position against Toyota Kirloskar Motor Pvt. Ltd., dismissed","author":"Saba","date":"January 6, 2017","format":false,"excerpt":"Competition Commission of India (CCI):\u00a0CCI has dismissed allegations of abuse of dominant position against Toyota Kirloskar Motor Pvt. Ltd. in terms of after-sales\u00a0services while observing that the issue raised in the information pertained to alleged deficiency in services and no case of\u00a0contravention of the provisions of Section 4 of the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":94381,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/12\/23\/allegations-against-mercedes-benz-india-pvt-ltd-for-alleged-abuse-of-dominant-position-dismissed\/","url_meta":{"origin":226247,"position":5},"title":"Allegations against Mercedes Benz India Pvt. Ltd. for alleged abuse of dominant position, dismissed","author":"Saba","date":"December 23, 2016","format":false,"excerpt":"Competition Commission of India (CCI):\u00a0CCI has dismissed allegations of abuse of dominant position against German luxury car manufacturer Mercedes Benz India Pvt. Ltd. Earlier, an information was filed by Shree Hari Inn Pvt. Ltd. alleging that an authorised service centre of Mercedes in Gujarat was resorting to malpractices with regard\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/226247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=226247"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/226247\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/76441"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=226247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=226247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=226247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}