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Supreme Court sets aside CCI penalty on Amazon in Future Group deal case
/ 2 min read
The apex court quashed the Competition Commission of India’s 2021 order imposing a ₹202 crore penalty on Amazon and also overturned the NCLAT ruling that had upheld the watchdog’s action
The apex court further directed that any amount deposited or recovered from Amazon pursuant to the earlier orders be refunded within eight weeks | Credits: Getty
The Supreme Court on Wednesday set aside the National Company Law Appellate Tribunal’s (NCLAT) June 2022 order rejecting US e-commerce giant Amazon's appeal against the suspension of its investment deal with Future Group.
A bench comprising Justices Vikram Nath and Sandeep Mehta also quashed the Competition Commission of India’s (CCI) December 17, 2021 order that had imposed a penalty of ₹202 crore on Amazon and suspended its transaction with Future Group.
“In view of the findings recorded above, the appeal is allowed. The impugned judgement dated June 13, 2022 passed by the NCLAT and order dated December 17, 2021 passed by the CCI are set aside,” Justice Nath said while pronouncing the verdict.
The apex court further directed that any amount deposited or recovered from Amazon pursuant to the earlier orders be refunded within eight weeks.
The verdict came on a plea filed by Amazon challenging the June 2022 order of the NCLAT, which had upheld the CCI’s decision to suspend the deal and levy the monetary penalty.
What was the dispute?
The dispute dates back to Amazon’s 2019 investment in Future Coupons Pvt Ltd, a promoter entity of Future Retail. The transaction later became the centre of a prolonged legal and regulatory battle involving Amazon, Future Group and billionaire Mukesh Ambani-led Reliance Industries after Future Group announced the sale of its retail, wholesale and logistics assets to Reliance Retail in 2020.
In December 2021, the CCI had suspended its earlier approval for the Amazon-Future deal, alleging that the US firm had suppressed material facts while seeking regulatory clearance. The antitrust regulator had also imposed a Rs 202 crore penalty on the company. Amazon subsequently challenged the order before the NCLAT, which dismissed its appeal in June 2022, prompting the company to move the Supreme Court.
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The legal battle between Amazon and Future Group had drawn significant attention as it was seen as a key test case for foreign investment rules, competition law and control over India’s fast-growing retail sector.
The dispute had also delayed Future Group’s proposed ₹24,713 crore asset sale to Reliance Retail, which was eventually called off in 2022 amid mounting financial troubles at Future Group.
(Witn PTI inputs)