Indian competition watchdog's ₹202cr fine on Amazon quashed by SC
Indian competition watchdog's ₹202cr fine on Amazon quashed by SC
The Supreme Court has overturned the Competition Commission of India's ₹202 crore fine on Amazon.
The penalty was related to Amazon's 2019 investment in Future Coupons, a promoter entity of Future Retail.
The CCI had alleged that Amazon hid material information and made false statements while seeking regulatory approval for the deal.
NCLAT order also quashed
The apex court has also quashed an order by the National Company Law Appellate Tribunal (NCLAT), which had upheld the CCI's penalty on Amazon.
The ruling directed that any amount deposited by Amazon in connection with this penalty should be refunded.
This comes after a mutual settlement between Amazon and Future Group, leading to all legal proceedings being withdrawn against each other.
Dispute traces back to $200M investment by Amazon
The dispute originated from Amazon's $200 million investment in Future Group's gift voucher unit in 2019.
Amazon had claimed that the deal gave it contractual rights preventing Future Retail from selling its retail assets to certain entities, including Reliance Industries.
The CCI had suspended its approval for this transaction over two years later, following allegations of information concealment during regulatory clearance.
CCI imposed penalty on Amazon
The CCI also slapped a ₹202 crore fine on Amazon for allegedly not being upfront about the actual scope and purpose of the agreement, including its strategic interest in Future Retail.
The penalties were imposed separately under different sections of law relating to the reporting obligations of parties involved in a transaction.
After Amazon failed to pay by mid-February 2022, the CCI issued a recovery notice which led to this legal battle.
Future Group entered deal with Reliance Retail
The legal fight escalated after Future Group announced a ₹24,713 crore deal to sell its retail, wholesale, logistics and warehousing businesses to Reliance Retail in 2020.
Amazon opposed the transaction and got favorable interim orders from a Singapore arbitrator as well as Indian courts.
However, the Future Group approached the CCI alleging that Amazon had concealed its strategic interest in Future Retail while seeking approval for the 2019 transaction.
