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Competition Commission of India Suspends Amazon's 2019 Deal With Future
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India, 18 Dec 2021 7:39 AM GMT
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While he is a massive sports fanatic, his interest also lies in mainstream news and nitpicking trending and less talked about everyday issues.
Creatives : Snehadri Sarkar
While he is a massive sports fanatic, his interest also lies in mainstream news and nitpicking trending and less talked about everyday issues.
CCI said that Amazon has "suppressed the actual scope" of the deal and had made "false and incorrect statements" while seeking approvals.
The Competition Commission of India (CCI) on December 17 suspended Amazon's 2019 deal with the Indian conglomerate Future Group after a review of allegations that the American MNC concealed certain information while seeking regulatory approval, reports news agency Reuters. This move will have an adverse effect on the e-commerce giant's attempt to prevent the sale of Future's retail assets to Reliance Industries for $ 3.4 billion since Amazon has used the terms of the $200 million investment in 2019 to block it.
According to Reuters, CCI said that Amazon has "suppressed the actual scope" of the deal and had made "false and incorrect statements" while seeking approvals. This cost the US-based company a penalty of Rs 200 crores.
The Amazon Future Group Battle
According to Outlook, the battle between the marketing giants dates back to August 2020 when Reliance Retail announced its Rs 24,713 crore deal with Future Group to acquire its retail and wholesale business along with logistics and warehousing business. Amazon, a shareholder in Future Retail and investment in Future Coupons Private Limited, was against the agreement. They agreed to buy a 49 per cent stake in Future Coupons Pvt. Ltd., an unlisted company of the Future Group.
The CCI made its decision in response to FCPL's March application, in which the Future Group accused Amazon of hiding information and violating India's foreign direct investment and foreign currency regulations when seeking the watchdog's approval in 2019 for Amazon's investment in FCPL.
Competition Commission of India
The Competition Commission of India is the National body responsible for fair competition by overseeing the function of markets in India. It enforces the Competition Act, 2002 to ensure that a 'common man' has access to the broadest range of goods at the most competitive prices. They are also responsible for eliminating practices that cause an adverse effect on competition. Their motive is to protect customers' interests and ensure freedom of trade in India.
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