In a blow to U.S. e-commerce giant Amazon Inc AMZN, the National Company Law Appellate Tribunal (NCLAT) of India upheld the competition watchdog's order suspending approval of the investment deal between Amazon and a Future Group firm dating back to 2019.
The tribunal has also ordered Amazon to pay the penalty of INR 200 crore ($25 million) within 45 days for non-disclosure of relevant information on combinations under the Competition Act, 2002, Bar and Bench reported.
Confirming the Competition Commission of India's ruling, the tribunal said that it is in full agreement with the antitrust watchdog that the U.S.-based e-commerce giant had not fully disclosed its strategic interest in Future Retail Ltd — a Future Group's firm.
The INR 1,400 crore ($179 million) Amazon-Future Group deal had received all the necessary regulatory approvals initially, which facilitated the execution of the deal. However, a nod from the competition watchdog was sought later on a plea by one Future group firm amid the legal tussle between Mukesh Ambani-owned Reliance Industries and Amazon over Future group's plan for an asset sale deal.
In a 57-page order, the CCI stated that Amazon had not disclosed its intent and strategic interests behind the deal.
Price Action: According to data from Benzinga Pro, Amazon shares closed 5.60% lower at $109.65 on Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.