New Delhi: The Competition Commission of India (CCI) on Friday suspended Amazon.com’s 2019 deal with Future Group and imposed a penalty of Rs 202 crore following a review of allegations that the US e-commerce giant had concealed information while seeking regulatory approval.The unprecedented step taken by the antitrust body 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.According to Moneycontrol, Amazon was charged by the complainants – Future Coupons Private Ltd (FPCL) and the Confederation of All India Traders (CAIT) – of not disclosing the intent to indirectly control the parent firm, Future Retail Ltd, through its acquisition of 49% stake in FPCL.“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,” the CCI order said.Also read: Reliance-Future Deal: More Than a White Knight Aiming for the Retail CrownIn 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.Earlier this week, Amazon had warned CCI 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”, a legal document seen by Reuters showed.(With inputs from Reuters)
