Shadine Taufik · · 1 min readAmazon to pay $25.8m fine in India amid Future Group deal
The National Company Law Appellate Tribunal (NCLAT) upheld the Competition Commission of India’s (CCI) ruling that imposed a US$25.8 million penalty on Amazon over a deal with Future Coupons that was made in 2019, reported Entrackr.
The CCI not only imposed a fine on the ecommerce giant but also suspended an investment deal between Amazon and Future Coupons, as per the 2002 Competition Act.
The investment deal initially occurred without a hitch. However, problems arose in 2020, when Reliance Retail said it would acquire Future Retail Group for US$3.2 billion. As Future Coupons is a subsidiary of Future Retail Group, the latter needed to have sought Amazon’s approval before being sold or merged with another firm, and it had not.
After the legal battles in the Supreme Court of India, the Singapore International Arbitration Tribunal, and the CCI, it was ruled that these sanctions would be imposed due to Amazon’s failure to provide complete and clear disclosure relating to its strategic interest in Future Retail Ltd.
Amazon is planning on putting an end to the Reliance-Future Retail acquisition. The US ecommerce company has 45 days to pay the fine.
Editing by Miguel Cordon and Joy Tirkey
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