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Oyo denies any exclusive arrangement with MakeMyTrip, questions hotel associations’ motivation behind complaint

Updated : October 31, 2019 09:56 PM IST

SoftBank-backed hotel chain Oyo Hotels and Homes, on Wednesday, denied any exclusive arrangement with hotel-booking service MakeMyTrip after the Competition Commission of India (CCI) ordered an investigation against hospitality services provider for alleged unfair business practices.

In an interview to CNBC-TV18, Aditya Ghosh, chief executive officer, South Asia, questioned the motivation behind complaints and public statements by hotel associations and hoteliers as most of them are franchises of other hotel companies.

Read also: Oyo founder Ritesh Agarwal speaks on the backlash from hotel owners, IPO plans and why he bought back stake 

Ghosh said, "There were various things alleged in the complaint. This is the second complaint against Oyo. The CCI order has ruled that Oyo is not in a dominant position or there is no abuse of power or anything of that sort. Since this is a complex commercial arrangement, there are various parties involved."

He added, "The CCI order explains that the agency has to investigate the agreement between MakeMyTrip and Oyo, which is absolutely fine. It gives us another opportunity to go out there and explain that this is how the whole thing works."

Further, he said the company is very happy about the CCI order as it clearly establishes and recognises Oyo as a hotel chain as opposed to an online travel agency.
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