In a 57-page order, CCI said it considers "it necessary to examine the combination (deal) afreshThe country's antitrust agency on Friday suspendedAmazon.com's 2019 deal with Future Group, potentially denting the UScompany's attempts to block the sale of Future's retail assets to an Indian peer.The regulator ruled that the USe-commerce group had suppressed information while seeking regulatory approval on an investment into Indian retailer Future Group two years ago.The ruling by the Competition Commission of India (CCI) could have far-reaching consequences forAmazon's legal battles with now estranged partner Future.Amazonhas for months successfully used the terms of its toehold $200 million investment in Future in 2019 to block the Indian retailer's attempt to sell retail assets to Reliance Industries for $3.4 billion.The regulator's 57-page order said it considers "it necessary to examine the combination (deal) afresh," adding its approval from 2019 "shall remain in abeyance" until then.The CCI's order saidAmazonhad "suppressed the actual scope" of the deal and had made "false and incorrect statements" while seeking approvals.
The CCI order imposed a penalty of around Rs 200 croreon the UScompany."The approval is suspended.
This is absolutely unprecedented," said Shweta Dubey, a partner at Indian law firm SD Partners, who was formerly a CCI official."The order seems to have found new power for CCI to keep the combination approval in abeyance," she added.
Amazonwill be given time to submit information again to seek approvals, the CCI added.Future and Reliance did not respond to a request for comment.Amazonsaid it is reviewing the order "and will decide on next steps in due course."The 2019 Future deal approval being put on hold could dentAmazon's legal position and retail ambitions, while making it easier for Reliance - the country's largest retailer - to acquire number two player Future, people familiar with the dispute said.Amazonhas argued that terms agreed in its 2019 deal to pay $200 million for a 49 per cent stake in Future's gift voucher unit prevent parent, Future Group, from selling its Future Retail Ltd business to certain rivals, including Reliance.But after Future complained to the CCI thatAmazonhad concealed facts, the CCI in June sought explanation fromAmazonsaying it hid factual aspects of the transaction by not revealing its strategic interest in Future Retail while seeking approvals.Amazon, in responses to CCI, said it never concealed material information, warning the watchdog that the deal's revocation would send a negative signal to foreign investors.The Future-Reliance deal has been on hold for months asAmazongot favourable interim rulings from a Singapore arbitrator and courts.
Future denies any wrongdoing.