Morpheus Research report alleges 'anti-competitive' practices by MakeMyTrip despite CCI order

Core Viewpoint - Morpheus Research has accused MakeMyTrip of continuing "anti-competitive practices" despite a previous penalty from the Competition Commission of India (CCI) in 2022, which fined the company $26 million for similar issues [1][2]. Group 1: Allegations of Anti-Competitive Practices - The report claims that MakeMyTrip enforces price parity arrangements with hotel partners, which is a violation of the CCI's directive [1][2]. - Morpheus Research alleges that the company uses a "price competitiveness score" to indirectly enforce pricing parity, affecting hotel rankings on its platform without explicit contractual agreements [3][5]. - Hotel executives and former employees have confirmed that price parity is still actively enforced, with daily monitoring and scoring of hotel partners [5]. Group 2: Financial Irregularities - The report highlights potential accounting irregularities, including exposure to receivables from the insolvent airline GoAir, with only part of the amount provisioned by MakeMyTrip [3]. - There is a significant discrepancy between adjusted profits reported by MakeMyTrip and those under international accounting standards, suggesting manipulation of financial metrics [4]. - The company is accused of using accounting tricks to inflate profits while downplaying competition and misleading customers through manipulative practices [4]. Group 3: Strategic Developments - MakeMyTrip is evaluating a potential listing of its Indian business to enhance brand growth and strengthen its market leadership in India [6]. - The company has completed an internal restructuring to consolidate its key brands in India, including the merger of RedBus India into MakeMyTrip (India) Pvt Ltd [6].