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CCI clears Oyo of market dominance, predatory pricing allegations

CCI clears Oyo of market dominance, predatory pricing allegations
Photo Credit: Photo Credit: VCCircle
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Gurugram-based budget hospitality and services provider OYO Hotels and Homes is not in a dominant position in the market, says the Competition Commission of India (CCI).

The competition watchdog added that Oravel Stays Private Limited, which operates Oyo, is a hotel chain and not an online travel agency (OTA). 

 This comes after the Federation of Hotel & Restaurant Associations of India (FHRAI), an industry body, had accused the company of market dominance and predatory pricing. 

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CCI has dismissed five out of six allegations, which include price parity, predatory pricing, charging of commissions, misrepresentation of information and hotel service fee levies, according to a statement.

The competition regulator has said that Oyo is not charging exorbitant commissions from hotels which are a part of its chain. 

Earlier in August, the commission had said in a ruling that Oyo was not found to be guilty of abusing its position.

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The regulator, however, has not cleared the company of all the charges and has ordered an investigation on Oyo and Make My Trip-Goibibo over the contract between the hotel chain and distribution platform for any alleged denial of access to other hotel players.

“We are a fully-compliant organisation and have the utmost faith in our administrative and judicial processes,”  an OYO spokesperson said.

SoftBank-backed Oyo, one of the world’s largest hotel chains, has been valued at about $10 billion. The company is facing a backlash from hotel owners, who are unhappy with its fee structure. 

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Last month, CCI had approved Oyo founder Ritesh Agarwal’s $1.5 bn worth stock buyback plan.


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