New Delhi: The Indian Competition Commission (CCI) on Friday suspended his approval of the Amazon 2019 agreement with the future coupon (FCPL), based on the only US e-tailer base fighting several legal battles to block sales proposed by the group in the future of assets To rely on retail for RS 25,000 Crore.
Development, which has extensive implications for the Jeff Bezos-LED e-tailer in the domestic market and the Indian retail industry, can be proven to be a stepping stone for the Reliance-Future agreement to go through, subject to regulations and legal agreements.
Antitrust Watchdog said he wanted to check the Amazon-FCPL agreement again.
In addition, he slapped the 200-crore Hospital penalty on Amazon to make “false and wrong statements” and pressure “real purpose” from the agreement while asking for approval.
Amazon has 60 days to submit a re-appointment for approval with “right, true, and complete” information and until then, the order of approval for the 2019 agreement “will remain in abeyance”, CCI said.
This makes Amazon with several choices, said sources, which includes interesting to a higher court or approaching the national law of the Appellate Tribunal (NCL).
“If approached by Amazon, every court or supervisory body will probably ask for e-tailers to pass the CCI obstacle first,” someone close to the development to Toi.
“But during his legal presentation to block the Reliance-Future agreement, e-tailer has stated that his investment in FCPL provides a strategic right for future retail (FRL), while while seeking CCI nods for FCP investment, it is said that there has been no share ownership in FRL and Not using any control or influence on it.
“In 2019, Amazon had acquired 49% in FCPL, the entity of the unregistered future group, for 1,500 crore Rs.
Because FCPL is held around 10% in FRL, the e-tailer claims it gives the right to the last.
Furthermore, when the dependency agreement in the future was announced, Amazon dragged FRL to the Singapore Arbitration Court for alleged violations of the contract.
When contacted, the Amazon spokesman said, “We are reviewing the order passed by CCI and will decide the next steps in time.” CCI orders related to the March application submitted by FCPL, where the latter accused Amazon has said direct foreign investment regulations (FDI) and hidden facts when he sought approval from the supervisor into the FCPL.