NCLAT upholds CCI order, directs Amazon to pay Rs 200 crore penalty in 45 days
The CCI's decision was based on Amazon's failure to disclose its intentions and strategic interests in the transaction.
FollowThe National Company Law Appellate Tribunal (NCLAT) upheld the Competition Commission of India's (CCI) ruling suspending Amazon's deal with Future Coupons on Monday, a blow to the e-commerce giant.
The NCLAT has also directed Amazon to pay a Rs 200 crore penalty within 45 days. Under the Competition Act of 2002, the penalty is for failing to disclose relevant information about combinations.
The appellate tribunal agreed with the CCI's conclusions, stating that Amazon failed to make complete disclosures. It also said that it agrees with the antitrust authority that Amazon did not make a "full, fair, and straightforward" disclosure about its strategic involvement in Future Retail Ltd, the publicly traded business that operated Big Bazaar's primary banner.
The American e-commerce behemoth had approached the NCLAT in response to the CCI's December 2021 order postponing approval of the merger between Amazon and a Future group company. The approval for the Amazon-Future Coupons agreement "must remain in abeyance," the CCI stated in a 57-page order.
The Rs 1,400 crore Amazon-Future Coupons agreement had initially received all relevant regulatory clearances, which eased the deal's implementation and money transfer. However, after a legal fight between the two sides erupted over Future group's plan for an asset sale transaction with Reliance, permission from the CCI was sought on a plea by one Future group entity.
Meanwhile, the CCI's decision was based on Amazon's failure to disclose its intentions and strategic interests in the transaction. The e-commerce behemoth had filed an appeal with the appellate forum, dismissing the charge.
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