In a major setback for US retail giant, the Competition Commission of India (CCI) on Friday suspended its approval for Amazon’s deal with and also imposed a penalty of Rs 202 crore on the e-commerce giant for certain contraventions.
Reportedly, the CCI imposed Rs 202 crore penalty on Amazon for providing “false and incorrect information” and “suppressing material facts” of 2019 Future deal.
The approval was given by the regulator back in November 2019 for Amazon’s deal to buy 49 per cent stake in Future Coupons.
“In exercise of the powers conferred under sub-section (2) of Section 45 of the Act, the Commission hereby directs Amazon to give notice in Form II within a period of 60 days from the receipt of this order, and, till disposal of such notice, the approval granted vide Order dated 28th November, 2019, in Combination Registration No. C-2019/09/688, shall remain in abeyance,” the CCI’s 57-page order read.
According to the regulator, certain contraventions by Amazon arise from a “deliberate design on the part of Amazon to suppress the actual scope and purpose of the combination and the Commission finds no mitigating factor”.
The country’s antitrust body has also asked Amazon to again file detailed Form II within a period of 60 days.
Amid a bitter legal battle with Amazon, Future Group had complained to the CCI following which the regulator issued a show-cause notice to the e-commerce major in July 2021.
