Updated 23 September 2023 at 15:51 IST
Supreme Court puts a pause on CCI's Rs 202 crore penalty on Amazon
CCI imposed a Rs 202 crore penalty on Amazon for its failure to provide transparent and accurate information during the regulatory approval process.
Stay on Amazon’s penalty: The Supreme Court (SC) of India has issued a stay on the Competition Commission of India's (CCI) order demanding that Amazon pay a penalty of Rs 202 crore (approximately $27 million) for acquiring a 49 per cent stake in a Future Group entity in 2019, according to media reports. The decision comes in response to CCI's allegations that Amazon concealed information when seeking regulatory approval for the acquisition.
The CCI initially approved Amazon's acquisition of a 49 per cent stake in Future Coupons (FCPL). However, upon further review, allegations arose against Amazon regarding the concealment of information related to the deal's actual scope and purpose.
As a result, the CCI imposed a Rs 202 crore penalty on Amazon for its failure to provide transparent and accurate information during the regulatory approval process. The penalty was divided into two parts, with Rs 200 crore and Rs 2 crore imposed on Amazon in accordance with separate sections of the law.
Amazon and Future Group dispute
The CCI's order required Amazon to pay the penalty amount by mid-February 2022. Since then, Amazon and the Future Group have been engaged in legal disputes, with the conflict beginning in October 2020 when an Emergency Arbitrator in Singapore issued an order restraining Future Retail Limited (FRL) from proceeding with its deal with Reliance Retail.
The SC bench, chaired by Justice Dinesh Maheshwari, issued the stay order, stating that no coercive measures should be taken against Amazon in relation to the CCI's notice until the next hearing on July 17. This decision reflects the SC's consideration of the overall circumstances surrounding the case.
The legal battle between Amazon and the Future Group has been a contentious and protracted one, involving multiple regulatory authorities and courts. The stay order from the SC represents a significant development in this ongoing dispute, providing temporary relief to Amazon while the matter continues to be litigated.
Published By : Business Desk
Published On: 23 September 2023 at 08:32 IST