Supreme Court Upholds CCI’s Rs 202 Crore Fine Against Amazon

Amazon files Supreme Court case against NCLAT upholding CCI order in Future Group investment case.

The Supreme Court (SC) has granted a stay of the Competition Commission of India (CCI) order for Amazon to pay a fine of Rs 202 crore for buying a 49% stake in the Future Group entity in 2019, a report published in The Economic Times (ET) has said.

Justice Dinesh Maheshwari, who presided over the SC bench in the case, noting the whole situation, ordered, “It is considered appropriate, therefore, provided that no enforcement action (Amazon) shall be taken concerning the notice against the appellant dated April 25 until 7 The next hearing is on July 17.”

Initially, CCI approved Amazon’s acquisition of 49% of Future Coupons (FCPL). However, after a review of the matter, charges were brought against Amazon, and it was found that it withheld information while seeking regulatory approval for the deal.

This led the CCI to fine the e-commerce company Rs 202 crore for failing to clarify the actual scope and purpose of the transaction.

The order directs Amazon to pay the penalty amount by mid-February 2022. Fines are imposed in two parts, according to different parts of the law. Hence, Amazon has levied Rs 200 crore and Rs 2 crore.

Future Group and Amazon have been feuding in court since October 2020. This started when a Singapore emergency arbitrator ordered FRL, which restricted it from continuing its deal with Reliance Retail, ET reported.

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