MUMBAI/NEW DELHI: In a major relief for e-commerce giant Amazon, the Supreme Court has set aside the Competition Commission of India’s (CCI) order imposing a ₹202 crore penalty on the company for allegedly failing to adequately disclose details of its acquisition of a 49% stake in Future Coupons Pvt. Ltd (FCPL).
A two-judge bench comprising Justice Vikram Nath and Justice Sandeep Mehta delivered the judgment, directing that any amount deposited by Amazon be refunded within eight weeks, along with 6% annual interest on the amount deposited.
“In the event the refund is not made within the aforesaid period of eight weeks, the amount remaining unpaid shall carry simple interest at the rate of 9% per annum from the expiry of eight weeks until the date of payment. All pending applications disposed of,” the court said while announcing the judgement.
Emails seeking comment from Amazon and the CCI remained unanswered till press time.
The dispute dates back to 2019, when invested ₹1,431 crore to acquire a 49% stake in FCPL, which in turn held a 9.82% stake in Future Retail.
In December 2021, the Competition Commission of India suspended its earlier approval for the transaction, saying Amazon had failed to disclose that the FCPL deal, the Future Retail shareholders’ agreement (FRL SHA), and related commercial agreements formed part of a “single integrated transaction”.
The regulator had also argued that made one set of representations before the CCI and another before a Singapore arbitration tribunal and courts. Before the CCI, Amazon had described the transaction largely as an investment in FCPL and its payments and loyalty business. Elsewhere, however, the company argued that its “strategic interest” lay in Future Retail’s retail assets and business network.
The CCI imposed a ₹200 crore penalty on 17 December 2021 for failure to notify the combination, along with an additional ₹2 crore fine for allegedly suppressing the true scope of the transaction.
Amazon challenged the order before the National Company Law Tribunal (NCLT), which in June 2022 upheld the regulator’s decision in a ruling by a two-member bench comprising Justice M. Venugopal and Justice Ashok Mishra.
Amazon had separately opposed ’s proposed ₹24,713 crore acquisition of Future Retail’s assets, a deal that was later called off. The company had argued that its 2019 transaction with FCPL gave it rights that were affected by the proposed sale.
In 2023, the apex court had granted interim relief to Amazon by staying the ₹202 crore penalty.