InvestorQ : Why has Amazon now taken the CCI to the NCLAT and what is the likely outcome of this case?
sarah Leo made post

Why has Amazon now taken the CCI to the NCLAT and what is the likely outcome of this case?

Answer
image
Rashi Mehra answered.
4 months ago
Follow

In the latest twist to the ongoing battle between the Future group and Amazon over the Reliance merger deal, Amazon has dragged the Competition Commission of India (CCI) to the NCLAT. This is against the decision of CCI to suspend the 2019 deal between Amazon and Future Coupons. The deal had given Amazon indirect stake in Future retail and the deal prevented any sale of FRL to competitors without giving first ROFR to Amazon.

For the last 16 months since the deal was first signed between Reliance and Future group, Amazon has been trying to block the sale of Futures group businesses to Reliance Retail. The latest 2-judge bench order upheld the decision of CCI to suspend the 2019 agreement. However, the value of this is dubious since both Future and Amazon had agreed that disputes would be negotiated via SIAC and now one party cannot renege on commitments.

23 Views