CCI has reportedly revoked its clearance toAmazon ’s 2019 deal with Future Coupons.- CCI took the action based on a complaint filed by
Future Coupon Private Limited and the Confederation of All India Traders. - The legal battle between Amazon and
Future Retail dates back to August 2020, after Reliance Retail agreed to buy Future Group’s retail assets.
The company has also imposed a ₹200 crore fine on the US-based ecommerce giant for concealing the facts, a report by Reuters has revealed.
"This order shall govern the disposal of the proceedings initiated against Amazon.com NV Investment Holdings, a direct subsidiary of Amazon.com Inc, in relation to its acquisition of 49 percent shareholding in Future Coupons Private Limited (FCPL)," the order reportedly read.
It further reportedly said, "Amazon had suppressed the actual scope of the combination and had made false and incorrect statements in relation to the commercial agreement, which are intertwined into the scope and purpose of the Combination."
Business Insider has reached out to Amazon and Future Group for comments on the report.
CCI took this action based on a complaint filed by Future Coupon Private Limited (FCPL) and the Confederation of All India Traders (CAIT).
The development comes only a few days after Amazon had reportedly argued that CCI does not have the legal power to revoke a deal that has already been cleared. "The power to revoke an approval is a drastic power and is not available to a statutory authority unless expressly provided" in Indian law, Reuters had reported.
The legal battle between Amazon and Future Retail dates back to August 2020, after Mukesh Ambani-led Reliance Retail agreed to buy Future Group’s retail, wholesale and warehousing assets for ₹24,713 crore.
Amazon, which held about 3% stake in Future Retail through its 49% shareholding in Future Coupon, objected to the deal, saying that it had barred Future Group from getting into any retail agreement with 11 companies, including Reliance.
The Supreme Court of India in August upheld the emergency award given to Amazon by Singapore International Arbitration Centre (SIAC), which considered the Future and Reliance deal invalid. The case is still pending before India’s Supreme Court.
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