The National Company Law Appellate Tribunal (NCLAT) has upheld an order by the Competition Commission of India (CCI) suspending the deal between the e-commerce giant and Future Coupons. The order has also directed Amazon to pay a penalty of Rs 200 crore within 45 days.
The tribunal in its judgment upheld CCI’s order, and agreed that Amazon had not made full disclosures of the information to the commission.
CCI had suspended the deal with Future Coupons Pvt Ltd saying that the US major had suppressed information while seeking clearances for the transactions.
Amazon had, in 2019, agreed to purchase 49 per cent in Future Coupons, that owns 7.3 per cent equity in Future Retail through convertible warrants. It had the right to buy into Future Retail after a period of 3-10 years.
The CCI had, while approving the deal the same year, had mentioned that the deal would be revoked if the information provided by the acquirer was found to be incorrect.
In 2021, the 57-page order by the CCI had stated that the approval for the Amazon-Future Coupons deal “shall remain in abeyance”, which Amazon had challenged in the NCLAT.
“Amazon failed to notify FRL SHA and the commercial arrangements, as parts of the combination between the parties, and suppressed the actual purpose and particulars of the combination in contravention of the obligation contained in subsection (2) of Section 6 of the Act read with Regulation 5 and sub-regulations (4) and (5) of Regulation 9 of the Combination Regulations,” the CCI ruled, as reported by the Bar and Bench. BusinessToday