CCI revokes clearance to Amazon’s 2019 deal with Future Coupons, slaps Rs 200 crore penalty
Amazon had acquired 49 percent stake in FPCL in 2019 in a$ 200 million deal (Representative image)
The Competition Commission of India (CCI) on December 17 suspended Amazon’s deal with Future Group after it reviewed complaints that the Americane-commerce mammoth concealed information while seeking nonsupervisory blessing.
In a 57- runner order, India’santi-trust controller said Amazon suppressed “ the factual purpose and particulars” of the 2019 deal and sought to “ establish false representation and repression of material data”. CCI said it was now “ necessary to examine” the deal anew and said its blessing”shall remain in latency”until also.
Amazon was charged by the suers-Unborn Tickets Private Ltd (FPCL) and the Confederation of All India Dealers (CAIT)-of not telling the intent to laterally control the parent establishment, Unborn Retail Ltd, through its accession of 49 percent stake in FPCL.
“Amazon had suppressed the factual compass of the Combination and had made false and incorrect statements”in relation to the marketable agreement,”which are intertwined into the compass and purpose of the Combination,”the CCI order said.
The action comes days after Amazon reportedly argued before the agency that it doesn’t have the legal power to drop a deal to which concurrence has formerly been issued.”The power to drop an blessing is a drastic power and isn’t available to a statutory authority unless expressly handed”in Indian law, Reuters had quoted the company as saying.
