Morpheus Research Report Alleges Anti-Competitive Practices by MakeMyTrip Despite CCI Order
MakeMyTrip Accused of Continuing Anti-Competitive Practices Despite Regulatory Penalty
Morpheus Research, a leading activist short-seller, has released a report accusing travel booking platform MakeMyTrip of engaging in "anti-competitive practices" despite a significant penalty order from the Competition Commission of India (CCI) in 2022. According to the report, MakeMyTrip continues to enforce price parity arrangements with hotel partners, a practice that was previously fined $26 million by the CCI in October 2022.
Morpheus Research, which disclosed a short position in MakeMyTrip, alleged that the company maintains indirect enforcement of pricing parity through internal mechanisms such as a "price competitiveness score". This score can influence hotel rankings on the platform, even in the absence of explicit contractual clauses. The report also flagged accounting irregularities and an exposure to a receivable from insolvent airline GoAir, stating that only part of the amount has been provisioned by MakeMyTrip.
The activist short-seller questioned the company's use of adjusted financial metrics, alleging a significant gap between adjusted profits and those reported under international accounting standards in recent years. Morpheus Research also cited several industry experts who confirmed an indirect enforcement tactic previously identified in the CCI order.
Key Findings of Morpheus Research Report
| Comparison | Details |
|---|---|
| Penalty Order | $26 million fine by CCI in October 2022 |
| Investigation | New and undisclosed CCI investigation, with a report due in "early 2026" |
| Profit Gap | Significant gap between adjusted profits and those reported under international accounting standards in recent years |
MakeMyTrip has not responded to the report, with a spokesperson from the company not available for comment. The NASDAQ-listed firm has, however, announced plans to evaluate a potential listing of its Indian business in the country to catalyze growth and strengthen its leadership in India. The company has also completed its internal restructuring to combine its key brands operating in India under a single entity.
Investor Takeaway
Investors should be cautious of MakeMyTrip's alleged anti-competitive practices.
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