Competition and Antitrust Issues Facing Multinational Travel Aggregators in India

Why India Is a High-Risk Jurisdiction for Platform Conduct

Introduction: Competition Law as a Strategic Risk in India

India has become one of the most important growth markets for multinational travel aggregators, online travel agencies (OTAs), meta-search platforms, experience marketplaces, and mobility aggregators. With scale, however, comes scrutiny. Indian competition enforcement has increasingly shifted its focus toward digital platforms, marketplaces, and aggregators, treating them as potential gatekeepers rather than neutral intermediaries.

Unlike some jurisdictions where competition investigations move slowly, India’s enforcement environment combines active market studies, wide investigative powers, and strong remedial directions. For travel platforms, competition law is no longer a downstream litigation risk but a core business governance issue.

Market Power and Dominance in Digital Travel Markets

How Dominance Is Assessed in India

Under Indian competition law, dominance is not assessed solely by market share. Regulators examine:

• Network effects and platform dependency
• Access to consumer data and pricing intelligence
• Ability to influence suppliers’ commercial freedom
• Brand strength and consumer switching costs

Travel aggregators with strong brand recall, deep discounting capacity, and data-driven pricing engines can be characterised as dominant even in fragmented markets.

Why Travel Platforms Are Vulnerable

Hotels, airlines, and experience providers often rely heavily on a small number of platforms for demand. This dependency creates fertile ground for allegations of abuse of dominance.

Rate Parity and MFN Clauses: A Persistent Flashpoint

What Are Rate Parity Clauses?

Rate parity or “most-favoured-nation” (MFN) clauses restrict hotels from offering:

• Lower prices on their own websites
• Better terms on competing platforms
• Indian Competition Risk

Indian regulators view wide MFN clauses as potentially:

• Restricting price competition
• Inflating consumer prices
• Foreclosing entry by smaller platforms

Even “narrow” MFNs are now examined closely when imposed by large platforms.

Strategic Imperative

Multinational aggregators must carefully reassess parity obligations in India, ensuring they are narrowly tailored, justified, and periodically reviewed.

Deep Discounting and Allegations of Predatory Pricing

The Growth Playbook Under Scrutiny

Aggressive discounting funded by platforms rather than suppliers has been a key growth lever in India. However, when sustained over time, such practices attract allegations of:

• Below-cost pricing
• Market foreclosure
• Elimination of smaller rivals

India-Specific Enforcement Risk

Indian authorities look at intent, duration, and ability to cross-subsidise losses, particularly where global capital supports prolonged discounting.

Strategic Imperative

Pricing strategies must be supported by clear commercial justifications, internal documentation, and exit strategies to mitigate predatory pricing claims.

Self-Preferencing and Platform Neutrality

The Algorithmic Advantage

As platforms expand, many introduce:

• Preferred partner programs
• Sponsored listings
• Private-label or in-house offerings

While commercially attractive, these practices raise concerns when platforms:

• Rank their own offerings more favourably
• Fail to disclose paid placements
• Use non-public supplier data to compete against suppliers

Indian Competition Lens

Self-preferencing by a dominant platform may be treated as unfair discriminatory conduct, especially where transparency is lacking.

Data as a Competition Asset

Data-Driven Market Power

Travel aggregators possess vast datasets on:

• Pricing trends
• Consumer preferences
• Conversion rates
• Demand elasticity
• Competition Concerns

Using this data to:

• Undercut suppliers
• Influence ranking outcomes
• Set commission benchmarks

can trigger allegations of data-enabled abuse of dominance.

Strategic Imperative

Clear internal firewalls and governance protocols are critical when platforms operate multiple verticals or monetise data insights.

Exclusive Dealing and Platform Lock-In

Forms of Exclusivity in Travel Platforms

• Exclusive inventory arrangements
• Preferential commissions for exclusivity
• Contractual penalties for multi-homing

India-Specific Risk

Indian competition law is particularly sensitive to arrangements that:

• Reduce supplier choice
• Prevent new platforms from scaling
• Lock in hotels or operators through economic dependence

Even short-term exclusivity can be problematic if imposed by a platform with significant market power.

Algorithmic Transparency and Emerging Scrutiny

Algorithms Under the Microscope

Ranking, pricing, and recommendation algorithms are increasingly viewed as competition-sensitive tools.

Enforcement Trends

Regulators are beginning to examine:

• Whether algorithms disadvantage certain suppliers
• Whether ranking criteria are objective and transparent
• Whether paid promotions distort organic visibility

Strategic Imperative

While full algorithm disclosure is not required, platforms must maintain explainability, audit trails, and internal governance around algorithmic decisions.

Merger Control and Acquisitions in the Travel Sector

India’s Expanding Merger Scrutiny

Acquisitions of:

• Regional travel platforms
• Niche experience marketplaces
• Technology providers

can trigger competition concerns even if revenue thresholds are modest, especially where data or market power concentration is involved.

Strategic Imperative

India must be factored into global M&A competition assessments, not treated as an afterthought.

Building a Competition-Compliant Strategy for India

From Compliance to Design

For multinational travel aggregators, competition compliance in India requires:

• Early legal involvement in pricing and partner strategies
• Periodic review of supplier contracts and parity clauses
• Transparent ranking and advertising disclosures
• Internal training for sales, partnerships, and product teams

Board-Level Oversight

Given the scale of potential remedies including behavioural directions and reputational damage, competition risk must be actively overseen by boards and senior management.

Conclusion: Competition Law as a Growth Constraint or Enabler

India’s competition regime is evolving rapidly, with digital platforms squarely in focus. For multinational travel aggregators, the choice is clear: treat competition law as a strategic constraint and risk enforcement action, or integrate it into platform design and governance as a long-term enabler of sustainable growth.

In India, competition compliance is no longer about avoiding penalties but about preserving the right to operate at scale.