Competition Comission of India accuses Amazon of concealing facts in deal for Future Group unit

Competition Comission of India accuses Amazon of  concealing facts in deal for Future Group unit
Source: https://www.reuters.com/article/us-amazon-com-india-future-antitrust-exc-idCAKBN2ES0KK 23.07.2021 460

India's Antitrust Authority has accused Amazon of hiding facts and providing false information during the period when the company was trying to get approval for an investment in the Future Group division in 2019. This point of view is set out in a letter that the Indian regulator sent to the American e-commerce giant.

The source notes that the letter from the regulator will complicate the already bitter litigation between Amazon and Future Group over the decision of the Indian company to sell its assets to Reliance Industries. The case is currently pending before the Supreme Court of India. Amazon says the terms negotiated in a 2019 deal to buy a 49% stake in Future's gift certificates division for $ 192 million prevents parent company Future Group from selling its Future Retail division to Reliance.

At the same time, the Competition Commission of India said Amazon had effectively covered up aspects of the deal without disclosing its strategic interest in Future Retail when it requested permission to buy a stake in the division in 2019. “The statements and behavior of Amazon before the Commission are tantamount to misstatements, false statements and concealment of material facts,” the regulator said in a statement. In its letter, CCI also does not rule out that Amazon will be punished for providing false information.

According to reports, Amazon has not yet officially responded to the letter from the Indian regulator. A company spokesman confirmed receipt of the letter and noted that Amazon is obliged to comply with Indian laws and intends to fully cooperate with CCI. Representatives of the Future Group and CCI refrain from commenting on this issue.

litigation  Amazon 

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