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This article is more than 1 month old.

CCI verdict against Amazon: CAIT knocks on PM Modi's door seeking intervention against e-commerce giant

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The Confederation of All India Traders (CAIT) has reached out to Prime Minister Narendra Modi seeking action against e-commerce giant Amazon for violating regulations and misleading the Competition Commission of India (CCI) for its 2019 deal with Future.

CCI verdict against Amazon: CAIT knocks on PM Modi's door seeking intervention against e-commerce giant
The Confederation of All India Traders (CAIT) on Monday has approached Prime Minister Narendra Modi seeking action against e-commerce giant Amazon for violating rules and misleading the Competition Commission of India (CCI) in a case for a takeover of Future Retail Ltd.
"We request for your immediate intervention in this crucial & critical issue which has larger ramifications on e-commerce and retail trade of India which is the second-largest employer in the country after agriculture and also relates with your vision of Atmanirbhar Bharat and Vocal for Local clarion call," the industry body said in a letter to PM.
CAIT's request for Modi's intervention comes against the backdrop of a recent CCI order suspending the 2019 Amazon-Future Group deal approval. The competition regulator has also imposed a Rs 202 crore penalty on Amazon for suppressing information and failure to notify combination in terms of the obligation.
CCI cited Amazon's internal e-mails and noted that the e-commerce giant suppressed facts, made false statements and misled the regulator regarding the terms of the deal. CCI said Amazon did not contest the genuineness of the e-mails.
Amazon had said that its rationale for investing in Future Coupons Private Ltd (FCPL) was "the business potential of FCPL to create long term value and provide a return on the investment". However, according to Amazon’s internal communication clearly showed the idea was to get a foot in the Indian retail sector and secure rights over Future Retail considered as strategic by Amazon, CCI said.
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Moreover, CCI has directed Amazon to notify the true combination of acquisition of the strategic rights by Amazon over FRL. "These rights are not available to even the ordinary shareholders of FRL. This is clearly illegal and in violation of FEMA FDI Regulations. The ED has nothing more to do – the evidence is right before it in the form of CCI order. ED has to take immediate action against Amazon," CAIT said in the letter to the PM.
Earlier on December 19, the industry body wrote to the Centre demanding immediate action against Amazon, calling the e-commerce giant an "IPC 420 multiplied by 2" culprit.
It also accused Amazon of pursuing a hidden agenda to control and dominate not only the e-commerce trade but also offline retail trade and looking to wipe out competition by overtaking prospective competitors.
"If still no action is taken, it will be presumed that some sort of influence is haunting the government and foreign funded companies are allowed to do whatever they like even at the cost of distortions and devastations of India's own trade and traders," the CAIT statement read.
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