Business News: The Competition Commission of India (CCI) has slammed Amazon by issuing a show-cause notice, accusing it of misleading and concealing material when it applied for approval to buy a 49 percent share in Future Group business Future Coupons in 2019. (FCPL).
The letter, dated June 4, said Amazon disguised factual parts of the agreement by not disclosing its strategic stake in Future Retail when seeking approval for the 2019 transaction. The letter adds to Amazon’s legal dispute with Future Group over the latter’s decision to sell retail assets to Reliance Industries, which is currently before India’s Supreme Court.
“The representations and conduct of Amazon before the Commission amounts to misrepresentation, making false statements, and suppression or/and concealment of material facts,” CCI said.
It also stated that a complaint from Future Group sparked its evaluation of the submitted materials.
The CCI questioned Amazon why it should not take action and penalize it for supplying incorrect information in the four-page “show cause notice.”
“We are in receipt of a show-cause notice from the CCI based on the complaint filed by Future as a part of an ongoing dispute. We are committed to complying with the laws of India and will extend full cooperation to the CCI on this matter, “an Amazon spokesperson replied to the CCI.
“We are confident that we will be able to address the CCI’s concerns,” he added.