India’s antitrust body on Friday suspended Amazon.com’s 2019 deal with Future Group following a review of allegations that the US e-commerce giant had concealed information while seeking regulatory approval. It also imposed a Rs 200-crore penalty on Amazon.
The unprecedented step taken by the Competition Commission of India (CCI) could have far-reaching consequences on Amazon’s legal battles with now estranged partner Future. The US firm has for months successfully used the terms of its toehold $200 million investment in 2019 to block Future’s attempt to sell retail assets to Reliance Industries for $3.4 billion.
In a 57-page order, the CCI 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 has been directed to pay monetary penalty within a period of 60 days from the receipt of this order.
CCI directed Amazon to give notice in Form II within a period of 60 days from the receipt of this order, and, CCI added that “till disposal of such notice, the approval granted vide Order dated 28th November, 2019, shall remain in abeyance”.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)