Amazon Hid Facts During Deal For Future Arm: CCI
- ByAyushi Ray | July 23, 2021
Amazon hid facts during deal for Future arm: CCI. The Competition Commission of India (CCI) has issued a show-cause notice to Amazon.com Inc., seeking to know why certain facts were not disclosed about its 2019 purchase of a 49% stake in a Future Group entity. The competition watchdog’s notice comes as Amazon, armed with a favourable arbitration award, is fighting a legal battle in India and overseas to restrain Future Retail Ltd from selling its assets to rival Reliance Retail Ltd for ₹24,713 crore. Amazon claims the terms of its 2019 stake purchase in Future Coupons (Pvt.) Ltd prohibits the sale. The Supreme Court is hearing the matter. In 2019, Amazon.com secured CCI approval for its 49% stake purchase in Future Coupons for ₹1,493 crore.
A spokesperson for Amazon acknowledged the CCI notice but did not comment on the merits of the allegations, given the dispute with Future Group is sub judice. “We are in receipt of a show cause-notice from CCI based on the complaint filed by Future. We are committed to complying with the laws of India and will extend full cooperation to CCI on this matter. We are confident we will be able to address CCI’s concerns,” the spokesperson for Amazon said in a statement. “As our dispute with Future is pending litigation, and we are also bound by confidentiality obligations, we are unable to comment on the merits or substance of any allegations , and that seems to be raised deliberately in the media in the context of ongoing legal proceedings,” said the spokesperson. Mint has reviewed a copy of CCI’s notice to Amazon.
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