Supreme Court sets aside CCI’s ₹202 crore penalty on Amazon in Future Coupons case
MUMBAI/NEW DELHI: In a major relief for e-commerce giant Amazon, the Supreme Court has set aside the Competition Commission of India (CCI) order imposing fresh sanctions. ₹The company was fined ₹202 crore for allegedly not disclosing adequate details regarding its acquisition of 49% stake in Future Coupons Pvt. Ltd (FCPL).
A two-judge bench comprising Justice Vikram Nath and Justice Sandeep Mehta passed the order, directing that the entire amount deposited by Amazon be refunded within eight weeks along with 6% interest per annum on the deposited amount.
While announcing the decision, the court said, “If repayment is not made within the eight-week period in question, simple interest at the rate of 9 percent per annum will be applied to the unpaid amount from the end of the eight-week period until the payment date. All ongoing applications are excluded from evaluation.”
Emails seeking comment from Amazon and CCI remained unanswered by press time.
The dispute dates back to 2019, when Amazon invested ₹1,431 crore to acquire a 49% stake in FCPL, which in turn had 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, Future Retail shareholders agreement (FRL SHA) and related commercial agreements formed part of a “single integrated transaction”.
The regulator had also argued that Amazon had made a number of representations before the CCI and another before a Singapore arbitration tribunal and courts. Prior to CCI, Amazon had largely described the transaction as an investment in FCPL and its payment and loyalty business. But elsewhere the company argued that its “strategic interest” lies in Future Retail’s retail assets and business network.
CCI imposed a sanction ₹200 crore penalty on December 17, 2021 for non-reporting of the combination and additional ₹2 crore fine for allegedly concealing the true scope of the transaction.
Amazon challenged the decision before the National Company Law Tribunal (NCLT), which upheld the regulator’s decision in June 2022 in an order delivered by a two-member bench comprising Justice M. Venugopal and Justice Ashok Mishra.
Amazon separately opposes Reliance Retail’s bid ₹24,713 crore acquisition of Future Retail’s assets, a deal that was later cancelled. The company had argued that the transaction with FCPL in 2019 gave it the rights affected by the proposed sale.
In 2023, the high court issued a temporary injunction against Amazon. ₹202 crore penalty.
