The CCI has said in its order that now it is necessary that the deal is re-evaluated. Amazon has given false and false statements.
The giant e-commerce company Amazon has suffered a double blow. The Competition Commission of India (CCI) first deferred its consent to its deal with Future Coupons and then imposed a fine of Rs 202 crore for violating certain norms. In November 2019, the Competition Commission of India allowed Amazon to buy 49 per cent stake in Future Coupons. Now the CCI has given its decision and said that this permission will remain suspended for now.
The CCI has said in its order that now it is necessary that the deal is re-evaluated. CCI issued a 57-page order saying that Amazon has given false and false statements. Earlier on November 16, the Delhi High Court had asked the CCI to quash the approval granted to the e-commerce company in the Amazon Future Coupons deal case.
CAIT also filed a petition on the decision of CCI
The CCI was given two weeks to do so. Earlier, CAIT had also filed a public interest litigation against CCI, stating that it had issued a show-cause notice to Amazon in June itself, but no decision has been given on it so far.
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What’s the matter?
The independent directors of Future Retail Limited had recently filed a petition with the CCI. It said that the CCI should revoke the approval given to Amazon for investment in Future Coupons in 2019. He had accused Amazon of giving wrong information while taking permission from the CCI. In fact, when Future Group had signed a deal to sell its retail, warehousing and logistics business to Reliance Industries for about Rs 24 thousand crore, Amazon objected by saying that it had entered into Future Coupons Private Limited, the promoter company of Future Retail, in August last year. Percent stake was bought. In such a situation, before making a deal with Reliance, Future Group should have taken permission from Amazon. Amazon has the right of first refusal.
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