New Delhi, December 17
In a significant development, the Competition Commission of India on Friday suspended its more than two-year-old approval for Amazon’s deal to acquire stake in Future Coupons Pvt Ltd and also imposed a Rs 202-crore penalty on the e-commerce major for certain contraventions.
This comes amid a bitter legal battle between Amazon and Future Group over the latter’s proposed Rs 24,713-crore deal with Reliance Retail Ventures Ltd (RRVL). Against this backdrop, Future Group had complained to the CCI.
Cci SLAPS Rs202-CR PENALTY ON e-comm giant
- The Competition Commission of India (CCI) on Friday suspended its more than two-year-old approval to Amazon-Future deal and slapped a Rs202-cr fine on ecomm giant
- Citing certain contraventions, the CCI said those have arisen “from a deliberate design on the part of Amazon to suppress the actual scope and purpose of the combination” and that it finds no mitigating factor
In a 57-page order, the regulator said the approval for the Amazon-Future Coupons deal “shall remain in abeyance”. Citing certain contraventions, the CCI said those have arisen “from a deliberate design on the part of Amazon to suppress the actual scope and purpose of the combination” and that it finds no mitigating factor.
Consequently, fines totalling Rs 2 crore have been imposed on Amazon. For failure to notify the combination in the requisite terms, the watchdog has also slapped a penalty of Rs 200 crore.
The parties involved in the combination were Amazon. com NV Investment Holdings LLC (Amazon) — a direct subsidiary of Amazon.com Inc — and Future Coupons. — PTI
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