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| India fined Amazon $26.3 million |
The Competition Commission of India has suspended Amazon's dealings with Future Group after investigating complaints about Amazon hidden information while applying for regulatory approval.
The Competition Commission of India has fined the US e-commerce giant $26.3 million for covering up the facts.
In a 57-page inquiry, the Competition Authority of India said Amazon had scrapped the actual objective and details of the 2019 deal and attempted to make false claims and remove material facts.
The Competition Commission of India said it was now necessary to review the deal and said it was awaiting approval before that date.
The plaintiff accused Amazon of not revealing its intent to indirectly take control of parent company Future Retail by acquiring 49% of the shares in Future Coupons.
The decision of the Competition Commission of India states: Amazon has rescinded the effective scope of the merger. Incorrect and false information about the trade agreement is closely related to the scope and subject matter of the merger.
A few days ago, Amazon informed the agency that it was not authorized to reverse approved transactions.
Reuters quoted the company as saying: Unless Indian law clearly states so, judicial authorities cannot have the power to withdraw consent.
On December 15, China Merchants released a statement refuting Amazon's allegations. He added that if the company believes the agency has no right to reverse the deal, it should not be involved in any lawsuit by CCI.
Amazon must pay the fine within 60 days
The Indian Competition Commission's request came at a time when the US company and Future Group were squabbling in an Indian court. It did so after Future Group agreed to sell its assets to Mukesh Ambani's Reliance Group.
Reliance Group, India's largest retail chain, said a year ago that it had reached an agreement with Future Group. Acquisition of retail, wholesale, logistics and warehousing operations for $3.4 billion.
Soon things started to get complicated. Amazon has accused Future Group of breach of contract and has filed a lawsuit with Singaporean arbitrators to block transactions between Indian companies.
The case reached India's Supreme Court, which decided in August to help the US company block the deal.
A few days ago, Amazon warned Indian antitrust authorities that canceling the deal with Future Group for 2019 sends a negative signal to foreign investors and enables Reliance Group to further restrict competition.