The Competition Commission of India suspended its more than two-year-old approval for Amazon's deal to acquire stakes in retailer Future Coupons Private Limited.
The CCI also imposed a Rs.202 crore penalty on the e-commerce firm. The regulator said Amazon had “suppressed the actual scope” of the deal and had made “false and incorrect statements” amid seeking approvals to invest in Future Group two years ago, considering “to investigate the combination deal as necessary.”
Amazon had agreed to purchase 49% in unlisted Future Coupons, which owns 7.3% equity in listed Future Retail through convertible warrants, with the right to buy into the flagship Future Retail after a period of 3 to 10 years.
Citing certain contraventions, CCI said those have arisen “from a deliberate design on the part of Amazon to suppress the actual scope and purpose of the combination” and finds no mitigating factor.
“This approval should not be construed as immunity in any manner from subsequent proceedings before the Commission for violations of other provisions of the (Competition) Act,” it said.
The Commission said it would examine the Amazon-Future deal afresh, “given that the combination is between players who are known in the online marketplace and offline retailing and they have contemplated strategic alignment between their businesses”.
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