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business | IST

CCI suspends approval for Amazon-Future deal, imposes Rs 202 crore penalty on Amazon

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CCI has suspended the 2019 approval for the Amazon-Future deal and also imposed a Rs 202 crore penalty on Amazon for suppressing information and failure to notify combination in terms of the obligation.

The Competition Commission of India (CCI) has suspended the approval for the Amazon-Future deal and also imposed a Rs 202 crore penalty on Amazon.
CCI was hearing a complaint by Future Coupon seeking revocation of its nod to Amazon's investment. The imposed penalty, according to the order has to be paid within 60 days of receipt.
As per the order, the penalty imposed on Amazon is for providing false information and suppressing material particulars.
CCI's fine break up to Amazon is Rs 2 crore for suppressing information and Rs 200 crore for the failure to notify combination in terms of the obligation.
"Amazon had suppressed the actual scope of the Combination and had made false and incorrect statements in relation to the BCAs, which are intertwined into the scope and purpose of the Combination." reads the order.
CCI has asked Amazon to again file a detailed Form 11 for the transaction and deemed that the current approval is no longer valid.
In November end, the Supreme Court, after hearing the Confederation of All India Traders (CAIT),  directed CCI to decide on the Show Cause Notice within 2 weeks, after hearing Amazon.
Amazon had earlier argued, as per a Reuters report, that the power to revoke an approval was a drastic power and was not available to statutory authority (in this case CCI) unless expressly provided in Indian law.
CAIT  questioned Amazon's stance and argued that if Amazon felt that way, it should not have turned up for the hearings.
Meanwhile, the independent directors of Future Retail Ltd (FRL) wrote to CCI requesting it to revoke the 2019 approval too in November.