Future Retail stock soars 20% as CCI slams Amazon for 'suppressing facts'

Updated : Dec 18, 2021 07:54
|
EJ Biz Desk

In a scathing order against e-commerce giant Amazon, India's anti-trust body CCI said Amazon had "suppressed the actual scope" of the Future deal and had made "false and incorrect statements" while seeking approvals.

Owing to this Competition Commission of India suspended Amazon.com's 2019 deal with Future Group. Which is the centrepoint of a legal battle between Amazon and Future Retail and the obstacle in Mukesh Ambani acquiring the latter's assets. 

Read/Watch Also: Amazon fined a billion dollars

As part of the deal, Amazon had acquired 49 per cent stake in Future Coupons - the promoter firm of Future Retail and also had rights to buy into the flagship Future Retail after three to 10 years.

Just a year into the agreement, Reliance Retail Ventures in August announced the buyout of the retail, wholesale, logistics and warehousing business of Future Group for ₹ 24,713 crore.

The bitter battle which is currently in the Supreme Court began from there as Amazon objected to Future's deal with Reliance, saying that it was a violation of a non-compete clause and a right-of-first-refusal pact it had signed with Future Group. 

The CCI’s order comes two weeks after the Supreme Court had given two weeks’ time to Amazon to file its response in the case.

 

CCIFuture GroupAmazon

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