By Aditya Kalra

NEW DELHI (Reuters] – Amazon (NASDAQ 🙂 has warned India’s antitrust agency that revoking its deal with Future Group for 2019 would send a bad signal to foreign investors. This would also allow Reliance, a local retail giant to “further limit competition,” according to a document seen by Reuters.

After allegations by Amazon that it had not disclosed facts, the Competition Commission of India reviewed its approval of the investment of $200 million made by the U.S. firm in Future in 2019.

CCI reviewed the matter after Future, Amazon’s former partner filed a claim. Both sides are at war since last year. In 2019, the U.S. used its terms of toehold investments to prevent Future’s plan to sell off retail assets to Reliance Industries, which was laden with debt.

Future may be in liquidation but the validity of this small deal worth $200 million could have profound implications for India’s retail industry.

Reliance will have to stop Future’s acquisition plan if Amazon wins, even though it is expanding rapidly into ecommerce.

People familiar with the matter say that if the deal for 2019 is canceled, this could allow Reliance to close the Future deal faster, which would hurt Amazon’s ambitions in retail.

Amazon, in confidential filings on December 12, stated that CCI’s revocation of approval is “bound” to send an message to foreign investors about India’s economic and regulatory framework.

Amazon’s 60-page submission stated that Future’s goal was to “unwind the investment” in order to permit Reliance to strengthen its position and “will further limit competition in India’s retail market.”

The bruising public battle https://www.reuters.com/article/amazon-india-future-reliance-idUSKBN2871AM over Future Retail pits Jeff Bezos’ Amazon against Reliance, run by one of India’s richest men, Mukesh Ambani, in a bid for retail dominance in India.

Reliance India’s Number 1 retailer Reliance is India’s No. 1 retailer, with over 13,000 stores and growing rapidly into ecommerce.

Future Retail comes in second place with more than 1500 stores.

Reliance, Future and Amazon did not respond to our request for comments. CCI was also unavailable for comment.

CCI CONTAINS NO INFO, CCI HAS NO POWER’

Future-Reliance’s deal was put on hold after Amazon received favorable interim rulings from both Indian and Singaporean courts. Future strongly denies wrongdoing and continues to be litigated in various forums.

Amazon claims that Future Group’s 2019 agreement to buy a 49% interest in Future’s gift-voucher unit for $200 million prevents Future Group (its parent) from selling Future Retail Ltd. to other rivals including Reliance.

The CCI requested explanations from Amazon in June. It claimed that Amazon hid facts about the transaction and did not disclose its strategic interest at Future Retail, while it sought approvals.

Amazon claims that the CCI was not aware of any information it had received in December 12. This is the first report here.

Amazon states in its filings that “there was no concealment or misrepresentation of any material information.”

CCI’s 2019 approval orders state that the decision is “revocable if any information given” is incorrect.

Amazon argues that the CCI is not empowered to make such a decision in its submission. Accordingly, its Indian law approval order is final and binding.

Amazon asserted that “the power to revoke an approval” is extreme and not accessible to a statutory power unless explicitly stated in Indian law.