The report claims MakeMyTrip continues to apply price parity practices with hotel partners despite a 2022 ruling by the Competition Commission of India (CCI) directing it to stop such conduct. The regulator had imposed a penalty of about $26.1 million, citing “anti-competitive” and “abusive” practices in its hotel marketplace.
Morpheus Research, which disclosed a short position in the stock, said it conducted interviews with 103 industry participants, including former employees.
It alleged that MakeMyTrip may still enforce price parity indirectly through a “price competitiveness score” that influences hotel rankings, even without explicit contractual clauses.
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The report further alleged that the company is using earnings management to mask weakening financial performance, while downplaying competitive pressures and losing market share. It also flagged concerns around customer practices, including refund issues and the presence of “bad actor” hotels on the platform.
Additionally, Morpheus claimed that MakeMyTrip has not made provisions for a potential adverse outcome in its appeal against the CCI order, warning that such a scenario could materially impact its earnings.
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