Amazon-Future Deal Slapped with Rs. 200 Crore Fine and Suspension by Competition Commission of India
The Competition Commission of India (CCI) slapped Amazon-Future Deals with a fine of Rs. 200 crores and suspended the Future Deals with the Company. The Commission stated in his report that amazon has “suppressed the actual scope” of the deal and made “false and incorrect statements”
Highlighted facts
- Amazon successfully used the terms of its Toehold investments for the month.
- The Indian Company Future Group is unlikely to cooperate with Amazon.
- Earlier, the Citation quoted by Amazon was, the Future Group committed the Breach of Contract.
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The 2019 Deal of Amazon.com with the Future Group has been suspended by India’s antitrust agency on Friday. Because of the possibility of attempts made by the US-E commerce to sell the future retail assets to the Indian market dealer.
The regulatory body revealed that the US Company had suppressed the information during the seeking of approval for the investment into the Indian Retailers Future group. The deal was signed two years before.
Now there may be several unsatisfactory consequences for the dissolute Amazon. Com Company with the Future group. The reason behind this is the nature of agency ruling.
Amazon has successfully used the terms of its toehold of 1500 rupees in the Future in 2019 to block the attempts of Indian retailers to sell retail assets to Reliance Industries for 25900 Crore.
Official order by CCI
Shweta Dubey, a partner at Indian law Firm SD Partners, and was formerly a CCI official, said “The approval is suspended. This is unprecedented”.
Added “The order seems to have found new power for CCI to keep the combination approval in abeyance”.
The regulatory order of 57 pages said “It is necessary to examine the combination (deal) fresh”. And also included that till then the approval shall remain abeyance. And told the charges of disclosing the necessary facts of the deal and tried to provide a false and incorrect statement to get the approval.
A penalty of around 200 Crores has been imposed by the CCI on the American Company and given the time to file its reply and to submit the information again to seek approval.
Amazon’s reply
Amazon said it is reviewing the order and will file his reply and decide his next step in a short period.
The Reliance Industry and the Future Group did not respond to a request for comment.
The source also added that the Indian Company is not ready to proceed in the deal with the American Company after the clearance of the antitrust agency. He added that Future Group is also set to take CCI’s Friday decision before various legal forums to argue that Amazon has no legal basis to challenge its assets sale.
