Competition Commission of India (CCI) on Wednesday, July 31, dismissed allegations of unfair business practices against Oravel Stays, which owns OYO Rooms, stating it cannot be “unambiguously” concluded that the company is in a dominant position.
For the case, CCI considered the “market for franchising services for budget hotels in India” as the relevant one.
Oravel Stays provides budget accommodation to customers through online booking under the brand-name “OYO Rooms.”
The complainant alleged that the agreement contained clauses—which were one-sided, unfair, and discriminatory—which OYO was able to impose because of its dominant position.
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