Lawstreet Journal

CCI Accuses Amazon of Concealing Facts in Deal with Future Group Unit

Lawstreet Journal 23 Jul 2021 6:07pm

Image courtesy: Lawstreet Journal Business CCI Accuses Amazon of Concealing Facts in Deal with Future Group Unit

According to recent reports, India's antitrust regulator CCI has accused Amazon.com Inc of concealing facts and making false submissions when it sought approval for a 2019 investment in a Future Group unit in a letter.

The note adds to Amazon's bitter legal battle with Future Group over India's firm decision to sell its retail assets to Reliance Industries, which is currently before India's Supreme Court.

Amazon has claimed that the terms of its 2019 deal to pay $192 million for a 49 percent stake in Future's gift voucher unit prevent Future Group from selling its Future Retail Ltd business to Reliance.

The Competition Commission of India (CCI) stated in a letter dated June 4, 2021 that Amazon hid factual aspects of the transaction by not disclosing its strategic interest in Future Retail when it sought approval for the 2019 deal.

"Amazon's representation and conduct before the Commission amounts to misrepresentation, making false statements, and suppression or concealment of material facts," according to the letter. It also stated that the review of the submissions was prompted by a complaint filed by Future Group.

The CCI asked Amazon in the four-page letter, dubbed a "show cause novice," why it should not take action and penalise the company for providing false information.

According to a source with direct knowledge of the matter who declined to be identified because the letter has not been made public, Amazon has yet to respond.

"We are confident that we will be able to address CCI concerns," Continue Reading...


Tagged: Amazon   Future Group  
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