The Competition Commission of India (CCI) has once again said that there was misrepresentation and concealment when Amazon took a stake in Future Coupons Private Limited back in 2019.
This deal between Amazon and the Future Coupons apparently gave Amazon the right to acquire another group company (Future Retail Limited) first, in case it was ever put up for sale.
So when Future Retail went bankrupt and Reliance tried to acquire it, the big legal fight between the giants started.
And while this legal battle was going on, the CCI came out and (indirectly) said that they might've missed out on some things at the time of the deal in 2019. So in December 2021, they issued an order that suspended this 2019 deal between Amazon and Future Retail and imposed a Rs 200 crore penalty on Amazon.
Naturally, Amazon challenged this order in court. It seemed unfair to them that a 2-year-old order could be randomly reversed by the CCI.
But at a hearing before the NCLAT yesterday, the CCI re-iterated that they now believe Amazon acquired Future Coupons because it gave them an indirect way to control Future Retail. And since this was not disclosed at the time of the deal, the transaction should be cancelled.
It's another one of those "taareek pe taareek" type of things, but you can count on us to keep you updated with the latest developments in the case.