NCLAT Rejects Amazon Plea Against CCI Order

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NCLAT Rejects Amazon Plea Against CCI Order
14 Jun 2022
5 min read

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News Synopsis

On Monday, the National Company Law Appellate Tribunal (NCLAT) dismissed Amazon.com's proceedings against the CCI in order to close the 2019 transaction with the Future Group. It was to curb information while seeking regulatory approval.

The transaction involves a US major investment of Rs 1,431 crore to acquire a 49% stake in Future Coupons Pvt Ltd (FCPL) led by Kishore Biyani in 2019.

The court upheld CCI's view that Amazon misled antitrust regulators to misunderstand the merger and its purpose in Amazon's interests in FCPL's business, and provided false information and material omissions.

However, the 300-page order states that the real purpose of the deal is to achieve a strategic alliance with the Future Group as a "foot-in-door" for India's retail sector. The court found that Amazon made future retail (FRL) disclosures only in the area of ​​FCPL-owned FRL stock warrants.

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