In the month of June, the Competition Commission of India (CCI) had accused Amazon of hiding facts and making false submissions when it sought approval for an investment in a unit of Future Group.
Reuters was the first media organization to report CCI’s charges after reviewing the body’s letter to Amazon.
The action by India’s antitrust regulator followed a complaint filed by Future Group accusing Amazon of concealing vital parts of their agreement while seeking approval to acquire its Future Coupons Private Ltd. (FCL) unit in 2019 as the company went ahead with efforts to transfer its retail assets to Reliance Industries Limited (RIL).
As reported by Moneycontrol, two people familiar with the issue said Future Group contended that if the e-commerce company had informed the CCI about the “so-called protective rights” it held over Future Retail Ltd. (FRL), FCT’s contract would have failed to pass.
One of the individuals added that the CCI could now revisit the order as well as terminate Amazon’s contract with FCL with the potential of clearing the path for the purchase by RIL of FRL’s assets.
In November 2019, CCI concluded while clearing Amazon’s purchase of 49 percent in FCL, “This order shall stand revoked if, at any time, the information provided by the acquirer is found to be incorrect.”
According to Moneycontrol, the complaint by Future Group could end up drastically recasting the sector due to the Group’s diverse retail assets in hypermarkets, supermarkets, and convenience stores under big brand labels including Big Bazaar and 7-Eleven.