NCLAT upholds CCI’s ruling against Amazon-Future deal, orders to pay Rs 200 crore fine

On Monday, June 13, the National Company Law Appellate Tribunal (NCLAT) upheld the Competition Commission of India’s (CCI) order against the retail giant, Amazon & has ordered to pay Rs 200 crore penalty within 45 days.

In August 2019, Amazon decided to acquire a 49% stake in Future Coupons Pvt Ltd, a subsidiary of Future Retail Ltd. In November of the same year, CCI had approved Amazon’s deal and had stated that the order may get revoked at any time if the information provided by the acquirer was found incorrect.

In December 2021, CCI had suspended Amazon’s plan to acquire a stake in Future Coupons Pvt Ltd and had directed the e-commerce firm to pay a Rs 200 crore penalty.  The fine was imposed for none disclosure of information under Section 43A of the Competition Act, 2022.

Amazon had approached the NCLAT to challenge the CCI’s decision. NCLAT has stated that Amazon has not made the necessary disclosure and failed to comply with the anti-trust watchdog’s conditions.