India court orders antitrust body to rule on Amazon-Future dispute within two weeks -Breaking
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© Reuters By Aditya Kalra
NEW DELHI, (Reuters) – An Indian court ruled Tuesday that India’s antitrust regulator has until Tuesday to determine whether Amazon (NASDAQ) misled Indian authorities when it sought approval for a deal for 2019 with India’s Future Group. This group includes Indian retailers.
According to the Confederation of All India Traders, (CAIT), it submitted the case on Monday to the Delhi High Court. It received a ruling on Tuesday.
Amazon and Future (India’s 2nd-largest retailer) have been in an ongoing legal dispute since last year. Future tried to block Future from selling its retail assets for $3.4 million to Reliance, but the ecommerce firm won. Future also accused Future of breaking some agreements.
Future denies wrongdoing, and is threatening liquidation if its assets are not sold. Future has been advocating before the Competition Commission of India that the approval for 2019 Amazon deal be withheld. The U.S. company made false representations when it sought approval. Amazon stated that it was confident in addressing these regulatory concerns.
The CAIT on Tuesday stated that it should decide immediately. It has ramifications which could affect their businesses if Future-Reliance is not approved.
The CCI panel of two judges ruled that the CCI should resolve the dispute between Future and Amazon within two weeks. According to the retailer group, it added in its statement that traders “should not be made a victim or experience any financial loss.”
Amazon and the CCI did not respond when asked.
At the heart of the two companies’ legal dispute is Amazon’s deal to invest $200 million in Future Coupons, a unit of Future Group, in 2019.
A person with knowledge of the case stated that it was unprecedented for CCI to unilaterally cancel a deal, even if misrepresentations were made. However, any such decision could have an impact on the ongoing dispute.
Source: “If there’s not (2019) transaction there’s not dispute between Amazon, Future,” the source stated. The person asked to remain anonymous because they were not permitted to address the media.
In July, Reuters exclusively https://reut.rs/3HkZhmN reported that the CCI had reviewed a complaint from Future and then accused Amazon of concealing facts while seeking approval to invest in a Future Group unit in 2019, after the watchdog compared legal disclosures made by Amazon at several forums.
Amazon stated to Reuters that at the time it was certain of addressing concerns raised by the watchdog.
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