CCI blames Amazon for hiding facts in a deal for the Future Group unit

0
212

India’s antitrust authority accused Amazon.com Inc of hiding facts and making false statements in seeking approval for a 2019 investment in Future Group’s unit, a letter said. e-commerce giant spotted by Reuters revealed.

This letter complicates the legal significance of the law with Amazon for Future Group, due to the Indian company’s decision to sell its assets to Reliance Industries – a case that is already in the Indian high court.

Amazon argued that the terms that all of its businesses agreed in 2019 to pay $192 million for a 49% stake in Future’s gift certificates prevented its parent, Future Group, from selling its Future Retail business. Ltd. and Reliance.

In a letter dated June 4, the India Competition Commission (CCI) said that Amazon hid the true nature of the trade by not disclosing its rights to Future Retail when seeking approval for the 2019 deal.

Amazon’s statements and conduct before the Commission were inadequate, making false statements and hiding or/or hiding the facts”, he said. It was also found that its review of opinions was presented, which led to a complaint by Grupo Futuro.

In a four-page letter, dubbed an “information disclosure problem,” CCI asked Amazon why it shouldn’t take action and penalize the company for providing false information.

Amazon said in a statement to Reuters that it had received a letter that insisted on complying with Indian law and that its cooperation would be extended to the CCI.

Vaibhav Choukse, a lawyer and partner at J. Sagar Associates, said CCI rarely makes an announcement, and if CCI is not satisfied with Amazon’s response, it could be fined cash, even revising the contract.

The dispute over Future Retail, which has more than 1,500 supermarkets and other stores, is the most violent process between Jeff Bezos’ Amazon and Reliance, led by India’s rich man, Mukesh Ambani, as they try to win first place in the win. national. customers

There are also other challenges in India, a growing market in which it has made $6.5 billion in investments, including the CCI investigation into suspicious allegations made by small businesses that affected them.

In addition, it faces the prospect of regulation that will restrict the sale of private names and ban the US company.

In particular, Amazon said it described its interest in investing in future coupon units as one that will discuss gaps in India’s payroll business. But the letter said that Amazon informed other rules of the meeting that the basis of its relationship with Future Coupon was certain special rights acquired from Future Retail.

Follow and connect with us on Facebook, LinkedIn & Twitter

LEAVE A REPLY

Please enter your comment!
Please enter your name here