CCI fines Amazon Rs 202 crore suspends approval for deal with Future Coupons

As regards failure to notify combination in terms of the obligation cast under Section 6(2) of the Act, Section 43A of the Act enables the Commission to impose a penalty, which may extend to 1 per cent of the total turnover or the assets, whichever is higher, of such a combination.

The Competition Commission of India (CCI) has imposed a penalty of Rs 202 crore on Amazon and suspended its approval for the e-tailer`s deal with Future Coupons, seeking more information.

In an order issued on Friday, the CCI said that Amazon ought to have notified the combination and Future Retail (FRL) shareholding agreement for the purpose of acquisition of strategic rights over FRL through FCPL shareholders` agreement (SHA); and commercial agreements between Amazon and Future groups, for the purpose of establishing strategic alignment and partnership between Amazon Group and FRL as well as have a `foot-in-the-door` in the India retail sector.

Amazon failed to notify FRL SHA and the commercial arrangements, as part of the combination between the parties, and suppressed the actual purpose and particulars of the combination, as discussed above, in contravention of the obligation contained in sub-section (2) of Section 6 of the Companies Act read with Regulation 5 and sub-regulations (4) and (5) of Regulation 9 of the Combination Regulations, the CCI said.