CCI suspends Amazon deal with Future fines amazon Rs 200 crore

An Indian antitrust watchdog has revoked the approval it had granted for Amazon’s 2019 investment in a Future Group unit and imposed a fine of about $26.3 million to the American e-commerce giant for concealing facts. The Competition Commission of India said Amazon, which invested in Future Coupons in 2019, “suppressed the actual scope and purpose of the combination” and failed to notify some of its commercial arrangements. Amazon’s investment in FCPL gave the former a call option on acquiring the promoter stake of FCPL, Future Retail within 3-10 years. Amazon has relied on this aspect of the agreement in winning a stay on an acquisition of the Future Group’s retail businesses by RIL from the Singapore International Arbitration Centre (SIAC). “When foreign investment laws are relaxed and higher stake or acquisition of multi-brand retail assets is permitted beyond today’s possibilities, we would have a foot-in-the-door to acquire more in this strategic asset, should we so desire at the time,” said an internal email from Amazon regarding the transaction. The regulator’s order comes amid a dispute between Amazon and Future Group in connection with the latter’s Rs 24,713-crore deal with Reliance Retail. Under the agreement, Future Group will sell its wholesale, logistics, retail and warehouse businesses to industrialist Mukesh Ambani’s firm. On September 9, the Supreme Court had ordered a stay on proceedings before the Delhi High Court. It had also directed markets regulator Securities and Exchange Board of India, the Competition Commission of India and the National Companies Law Tribunal not to pass orders in the case.