CCI penalised Amazon and suspends all the future deals
The Competition Commission of India on Friday kept Amazon groups 2019.3 score 49% stake in a future group entity in abeyance and ordered a penalty of ₹202 cr for not been upfront about the actual scope and purpose of the deal.
Amazon’s investment in Future Coupons Pvt. Ltd. Has been at the centre of a bitter legal battle between the two groups about group’s sale of retail business to Reliance Retail Ventures Limited for about ₹24700 cr.
CCI had clear the deal in November 2019, after assessing the overlapping business of Amazon, FCPL and other group entities. It concludes that the deal is not likely to adversely affect competition in the market.
In a nutshell, Amazon should have notified the combination consisting of the interconnected steps and the Future Retail Limited shareholders’ agreement to acquire strategic rights over FRL through FCPL shareholder agreement and all the commercial agreements between Amazon and the Future group.