INSUBCONTINENT EXCLUSIVE:
In a 57-page order, CCI said it considers "it necessary to examine the combination (deal) afreshThe country's antitrust agency on Friday
suspended Amazon.com's 2019 deal with Future Group, potentially denting the US company's attempts to block the sale of Future's retail
assets to an Indian peer.The regulator ruled that the US e-commerce group had suppressed information while seeking regulatory approval on
an investment into Indian retailer Future Group two years ago.The ruling by the Competition Commission of India (CCI) could have
far-reaching consequences for Amazon's legal battles with now estranged partner Future.Amazon has for months successfully used the terms
of its toehold $200 million investment in Future in 2019 to block the Indian retailer's attempt to sell retail assets to Reliance Industries
for $3.4 billion.The regulator's 57-page order said it considers "it necessary to examine the combination (deal) afresh," adding its
approval from 2019 "shall remain in abeyance" until then.The CCI's order said Amazon had "suppressed the actual scope" of the deal and had
made "false and incorrect statements" while seeking approvals
The CCI order imposed a penalty of around Rs 200 crore on the US company."The approval is suspended
This is absolutely unprecedented," said Shweta Dubey, a partner at Indian law firm SD Partners, who was formerly a CCI official."The order
seems to have found new power for CCI to keep the combination approval in abeyance," she added
Amazon will be given time to submit information again to seek approvals, the CCI added.Future and Reliance did not respond to a request for
comment. Amazon said it is reviewing the order "and will decide on next steps in due course."The 2019 Future deal approval being put on
hold could dent Amazon's legal position and retail ambitions, while making it easier for Reliance - the country's largest retailer - to
acquire number two player Future, people familiar with the dispute said.Amazon has argued that terms agreed in its 2019 deal to pay $200
million for a 49 per cent stake in Future's gift voucher unit prevent parent, Future Group, from selling its Future Retail Ltd business to
certain rivals, including Reliance.But after Future complained to the CCI that Amazon had concealed facts, the CCI in June sought
explanation from Amazon saying it hid factual aspects of the transaction by not revealing its strategic interest in Future Retail while
seeking approvals.Amazon, in responses to CCI, said it never concealed material information, warning the watchdog that the deal's revocation
would send a negative signal to foreign investors.The Future-Reliance deal has been on hold for months as Amazon got favourable interim
rulings from a Singapore arbitrator and courts
Future denies any wrongdoing.
