New Delhi: The Competition Commission of India (CCI), India’s antitrust body, on Friday said Amazon’s 2019 deal with Future to remain in abeyance, saying the US e-commerce major failed to notify certain commercial arrangements as part of 2019 deal.
According to a report by Reuters, the competition watchdog has also imposed Rs 200-crore penalty on Amazon.
The unprecedented step taken by the CCI could have far-reaching consequences on Amazon’s legal battles with now estranged partner Future.
The US firm has for months successfully used the terms of its toehold $200 million investment in 2019 to block Future’s attempt to sell retail assets to Reliance Industries (RIL) for $3.4 billion.
All disclosures contraventions arise from a deliberate design by amazon to suppress scope of 2019 Future deal, the CCI said.
Amazon suppressed the actual purpose and particulars of 2019 deal, the CCI added.
In a 57-page order, the CCI said it considers “it necessary to examine the combination (deal) afresh,” adding its approval from 2019 “shall remain in abeyance” until then.
According to a report by Reuters a few days ago, Amazon has warned the antitrust body that revoking its 2019 deal with Future Group would send a negative signal to foreign investors and allow local retail behemoth Reliance to “further restrict competition”, a legal document seen by Reuters showed.
Meanwhile, the Confederation of All India Traders (CAIT) has questioned Amazon’s recent comment that the CCI had no power to revoke the approval it granted for the Future Coupons deal and said that if Amazon felt that way, it should not have turned up for hearings of CCI.