Home > News content

India canceled Amazon's acquisition of Future transaction license fined Rs 200 crore

via:新浪科技     time:2021/12/17 22:09:07     readed:945

Sina Technology News On the evening of December 17, Beijing time, it was reported that India's antitrust regulator "India Competition Commission" (CCI) today revoked The license for Amazon's acquisition of Future Coupons, a subsidiary of Future Retail Ltd in India.

At the same time, Amazon was fined 200 crore (about $26.3 million) by the CCI for concealing the facts of the transaction.

CCI's action against Amazon was initiated in response to complaints from Future Coupons and the All India Traders Federation (CAIT). Just a few days ago, Amazon argued that the CCI did not have the legal authority to revoke a transaction that had already been licensed.

Back in August 2019, Amazon announced the acquisition of a 49% stake in Future Coupons, the second largest retail chain in India. Future Retail operates more than 900 stores in India and has several supermarket brands including Big Bazaar.

But then, due to the impact of the COVID-19 pandemic, Future Retail decided to sell its retail business to Reliance Industries, another industrial giant in India. But the plan was opposed by Amazon.

Amazon said it prohibits future retail from selling its retail business to Reliance Group under the terms reached in its 2019 $192 million acquisition of a 49 percent stake in Future Coupons.

In July, CCI sent a letter to Amazon accusing it of concealing the facts and making a false submission when it sought approval for the Future Coupons deal.

Apparently, the CCI's accusatory letter complicates Amazon's legal battle with Future Retail over the sale of retail assets to Reliance Group. Today, the legal battle between the two sides has been brought to the Supreme Court of India.

At the time, the CCI said in a letter to Amazon that it had concealed some of the facts about the deal by not disclosing its strategic interest in future retail when it sought to approve the deal. The CCI also said that the review of Amazon's submissions was driven by future retail complaints.

In response, competition law expert Vaibhav Choukse said at the time that the CCI rarely issued such notices, and if the CCI was not satisfied with Amazon's response, it could be fined or even investigated into the transaction.

translate engine: Bing

China IT News APP

Download China IT News APP

Please rate this news

The average score will be displayed after you score.

Post comment

Do not see clearly? Click for a new code.

User comments