Legal · Professional & Local Services

OYO faces regulatory scrutiny over pricing practices

By Startup Enthusiast · 25 February 2026

What they do

OYO operates a network of budget hotels and homes across India and abroad

The company is under investigation by Indian regulators for alleged unfair pricing and contract terms

This adds to OYO's ongoing challenges with profitability and market trust

OYO is facing a regulatory probe over its pricing practices and contract terms with hotel partners.
The investigation is being conducted by the Competition Commission of India (CCI).
Regulators are examining whether OYO's agreements unfairly favor the company over hotel owners.
The probe follows complaints from hotel partners about one-sided clauses and opaque pricing.
OYO has said it is cooperating with the investigation and believes its practices are compliant.

OYO has faced repeated criticism from hotel partners over low margins and lack of transparency.
The company has been trying to restructure its business to improve profitability after pandemic losses.
Regulatory scrutiny could impact OYO's IPO plans, which have been delayed multiple times.

OYO is a budget hotel chain that also offers vacation homes and co-living spaces.
It operates in over 35 countries including India, China, the US, and Europe.
The company earns revenue through commissions from hotel bookings and franchise fees.
OYO has over 1 million rooms in its network globally.
It uses a technology platform to standardize and manage small independent hotels.

OYO plans to defend its position before the CCI and seek a resolution.
The company continues to work toward a public listing, though no timeline is set.