The Competition Commission of India (CCI) has suspended Amazon’s deal with Future Group. CCI ruled that Amazon had suppressed the scope and full details of its investment while seeking regulatory approval. A penalty of Rs 200 crore was imposed on Amazon.This is for failing to notify the details of its ‘combination’, as required in law.
Blow to Amazon
The CCI said it considers “it necessary to examine the combination (deal) afresh,” adding its approval from 2019 “shall remain in abeyance” until then.“In exercise of the powers conferred under sub-section (2) of Section 45 of the Act, the Commission hereby directs Amazon to give notice in Form II within a period of 60 days from the receipt of this order, and, till disposal of such notice, the approval granted vide Order dated 28th November, 2019, in Combination Registration No. C-2019/09/688, shall remain in abeyance,” the CCI order read.
CCI had approved Amazon.com NV Investment Holdings’ proposal to acquire 49% in Future Coupons Private Ltd. Amazon has 60 days to pay the monetary penalty.
