The Competition Commission of India has revoked its approval to Amazon’s 2019 deal with Future Coupons Pvt Ltd (FPCL) for allegedly concealing information while seeking regulatory approval, news agency Reuters reported. The antitrust body has also imposed Rs 200 crore penalty on Amazon for its failure to notify certain commercial arrangements as part of 2019 deal.
The U.S. firm has, so far, successfully used its USD 200 million investment in Future Group to block its attempted sale of retail assets to rival Reliance for $3.4 billion.
In a 57-page order, the competition watchdog said it considers “it necessary to examine the combination (deal) afresh,” adding its approval from 2019 shall “shall remain in abeyance” until then. Amazon had “suppressed the actual scope” of the deal and had made “false and incorrect statements” while seeking approvals, the CCI order added.
“Amazon had suppressed the actual scope of the Combination and had made false and incorrect statements in relation to the commercial agreement, which are intertwined into the scope and purpose of the Combination,” it added.
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CCI’s action came in light of a complaint filed by Future Coupons and the Confederation of All India Traders (CAIT). The deal suspension is likely to have have far-reaching consequences for India’s retail sector. The high-stakes battle is likely to determine the dominant player in India’s retail market in the years ahead. Earlier on Tuesday, citing a legal document, Reuters reported that Amazon had warned 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”
