The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) recently admitted the appeal of Oravel Stays Limited ( OYO ) against the imposition of penalty by the Competition Commission of India (CCI). Notices were subsequently issued to MakeMyTrip India Pvt. Ltd. and Ibibo Group Private Limited (GoIbibo)
Mukul Rohatgi, Mr. Raj Shekhar Rao, and Mr. Harman Singh Sandhu appeared for the appellant.
ASG Venkatraman assisted by Samar Bansal represented the CCI.
The Competition Commission of India had recently imposed a penalty of 47 Million Dollars in total against the hospitality providers Make My Trip(MMT), GoIbibo and OYO. The action was a result of the complaint filed by the Federation of Hotel & Restaurant Associations of India (FHRAI) alleging against the firms that they had abused their dominant positions. Several behavioral sanctions were also imposed along with the monetary penalty of 5% on the average turnovers of MMT, GoIbibo and OYO.
The relevant turnover rule for penalty computation was also proposed as a statutory amendment in the Competition (Amendment) Bill.
The segregation of online and offline channels, made while placing emphasis on the distinction between online travel agencies and other distribution channels will be a pivotal point of argument in this case.
Judicial Member Rakesh Kumar and Technical Member Ashok Kumar Mishra set the next date of hearing to 11th April 2023 while directing the appellant to deposit 10% of the penalty amount within a period of six weeks. The parties were also directed to complete pleadings before the first week of February, 2023.
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