India's CCI suspends Amazon's 2019 deal with Future Group, slaps fine of Rs 200 crore
In its 57-page order, the CCI has directed Amazon to pay the monetary penalty within a period of 60 days from the receipt of the order.
FollowIndia's antitrust body Competition Commission of India (CCI) has suspended Amazon's 2019 deal with Future Group and slapped a penalty of Rs 200 crore for concealing information while seeking approval. In its 57-page order, the CCI has directed Amazon to pay the monetary penalty within a period of 60 days from the receipt of the order. Amazon has suppressed "the actual purpose and particulars" of the 2019 deal and sought to "establish false representation and suppression of material facts", the CCI order reads.
The regulatory body said it was now "necessary to examine" the deal afresh and said its approval "shall remain in abeyance" until then. The US e-commerce giant was charged by the complainants, including Future Coupons Private Ltd and the Confederation of All India Traders, of not revealing the intent to indirectly control the parent firm, Future Retail Ltd, through its acquisition of 49 per cent stake in FPCL.
A month ago, the Delhi High Court had directed the CCI to revoke its approval to the Amazon-Future Coupons deal within two weeks. Welcoming the CCI's order, traders body CAIT said that it is a landmark order and "Amazon stands fully exposed for its mal-practices, and a bunch of lies at all levels together with continued violation of laws and the rules."
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Demanding to ban the Amazon portal in India, CAIT Secretary General Praveen Khandelwal said that the regulatory body has foiled vicious bid of Amazon to control the domestic firms.
The CCI's ruling came two weeks after the Supreme Court gave Amazon two weeks to file a response in a lawsuit. The CCI issued its decision in response to FCPL's March application, in which the Future Group firm accused Amazon of hiding facts and violating India's foreign direct investment and foreign currency regulations when seeking CCI clearance for Amazon's investment in FCPL in 2019.
