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Informist, Wednesday, May 27, 2026

 

--SC rejects CCI's INR-2-bln penalty against Amazon in Future Group case

 

NEW DELHI – The Supreme Court Wednesday set aside the Competition Commission of India's INR 2-billion penalty against Amazon.com NV Investment Holdings LLC for allegedly failing to notify the details of its 'combination' involving Future Group, as required in law. The top court also rejected a separate penalty of INR 20 million by the competition regulator against Amazon for allegedly suppressing the actual scope and purpose of the deal with Future Coupons.

 

The apex court said that if any amount was deposited by Amazon towards the penalty, it should be refunded to the e-commerce giant in eight weeks with a simple interest rate of  6% per annum. If the refund is not paid by CCI, a simple interest rate of 9% per annum will be applied on the remaining days till the amount is paid, the apex court said. 

 

The case has its genesis in a deal wherein Amazon invested INR 14.30 billion in Future Coupons in 2019. Amazon had decided to invest in Future Coupons with a view to strengthen and augment the latter's business, including the marketing and distribution of loyalty cards, corporate gift cards and reward cards to corporate customers, and unlocking value in the company. Amazon wanted to expand its portfolio in the payments landscape in India.

 

Amazon had further claimed that it does not have any direct or indirect shareholding in Future Coupons' arm Future Retail Ltd. With a view to protect its investment in Future Coupons, certain rights have been granted with respect to the Future Coupon's investment in Future Retail, Amazon said. These rights were stated to be contractual investor protection rights, with no voting rights, with a view to protect its investment in Future Coupons, said Amazon.

 

However, the Competition Commission of India said Amazon did not indicate a possibility of the combination being pursued by the company for having a 'foot-in-door' in the Indian retail sector, acquire strategic rights over Future Retail or entering into any commercial partnership with the latter to expand the ability of Amazon in ultra-fast delivery services. The internal correspondence of Amazon made it abundantly clear that the company was all along focussed on Future Retail, said the competition regulator.

 

It is obvious that the purpose of Amazon to pursue the combination was not the potential of the gift and loyalty card business of Future Coupons, the regulator said. Rather, Future Coupons was envisaged only as a vehicle in the combination to which no value or purpose is ascribed in the internal correspondence, said the regulator. Amazon had misled the competition regulator to believe, through false statements and material omissions, that the combination and its purpose were the interest of the company in the business of Future Coupons, it said.

 

Amazon had said that its deal with Future Coupons had granted it the power to block the sale of Future Retail's assets to certain entities, including Reliance Industries Ltd. However, details of these agreements were never mentioned to the competition body, said the regulator. After granting approval to the Future-Amazon deal in 2019, the anti-trust regulator kept it in abeyance in 2021 and imposed a penalty against Amazon. Challenging the penalty, Amazon moved the National Company Law Appellate Tribunal, which upheld the competition regulator's order. Thereafter, the e-commerce giant moved the apex court.

 

In 2019, Future Retail Ltd. decided to sell its assets to Reliance Retail Ventures Ltd in an INR-247-billion deal, which Amazon opposed. Thereafter, litigation proceedings continued between Amazon and Future before an arbitral tribunal, high court, Supreme Court, and the Competition Commission of India. In March, a settlement was reached between Future and Amazon, wherein it was decided that litigation pending before various courts would be withdrawn by the parties.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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