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BUSINESS EYE DECEMBER 31, 2021 | The Indian Eye 50

Fine and FigHtBacK:

what is the story behind amazon’s

anti-trust problem in india?

A trade body CAIT has requested Union Commerce Minister Piyush Goyal to order
for immediate suspension of Amazon portal in India

OUR BUREAU
ing approvals for it, the ED’s probe
New Delhi is independent of that.

he Competition Commission
of India (CCI) has slapped the dispute centers around
TRs 202 crore penalty on Am- three commercial agreements
azon for providing false information
and suppressing material particulars signed between Future and
in the deal to acquire a stake in Fu- amazon entities, which a Sin-
ture Coupons Private Ltd (FPCL).
The competition watchdog has also gapore arbitration panel – also
suspended the deal. In 2019, the hearing the dispute – has said
US-headquartered e-commerce gi-
ant Amazon announced the acqui- must be read together when re-
sition of 49 per cent shareholding viewing the transaction.
in Future Coupons Private Limited,
which is a part of Future Group. In
a 57-page order, the CCI noted that Amazon’s court filing contained
Amazon suppressed “the actual pur- a notice from the ED dated Feb. 19
pose and particulars” of the 2019 which sought details of its invest-
deal. ment in Future, including copies of
The CCI noted that there is agreements, bank account details
a “deliberate design on the part of and other related internal commu-
Amazon to suppress the actual scope Confederation of All India Traders supporters holding placards during a protest against nication. It also showed the ED is
and purpose of the Combination, Amazon at Chandni Chowk in Delhi (ANI) conducting a far wider probe, and
and the Commission finds no miti- had sought details of big vendors
gating factor.” on Amazon’s e-commerce website
The CAIT has requested Union summoned by the ED in recent in India, including sales numbers for
“resultantly, the commission Commerce Minister Piyush Goyal to weeks and the investigation had those that account for more than 5%
order for immediate suspension of caused “unnecessary harassment,” of total sales on Amazon.in.
considers it appropriate to levy Amazon portal in India, CAIT Sec- the U.S. e-commerce giant said in But in the meanwhile, Amazon
the maximum penalty of rs. 1 retary General Praveen Khandelwal its filing to the Delhi High Court on is buying out NR Narayana Murthy’s
investment firm Catamaran’s 76%
said in a statement.
Dec. 21. “The directions by the ED
crore each under the provi- But Amazon Inc is taking In- asking for disclosure of legally privi- stake in Prione Business Services.
sions of Section 44 and Section dia’s financial crime fighting agency leged documents and litigation privi- The latter runs Cloudtail, the largest
lege information is derogatory of the
to court, seeking to quash an inves-
seller on the Amazon India market-
45 of act. accordingly, amazon tigation into one of its 2019 deals. principles” laid out in Indian con- place with revenue of over Rs 16,600
is directed to pay a penalty of India’s Enforcement Directorate stitution, Amazon said in the filing, crore in fiscal year 2021. It is also
(ED) has for months been probing
Amazon’s arm that helps bring in
which is not public. “The investiga-
rs.2 crore,” cci said. Amazon’s $200 million investment in tion is a fishing and roving exercise.” third party sellers onto its platform.
India’s Future Group for suspected Amazon and the ED, which does Indian laws prohibit a market-
Reacting on the CCI order, violations of foreign investment laws. not make details of its investigations place operator to be a seller on the
trade body Confederation of All In- The investment is at the center public, did not immediately respond platform. So, Amazon cannot run
dia Traders (CAIT) said: “The order of protracted legal battles, as Ama- to requests for comment. The case Cloudtail on its own platform. Am-
of the CCI penalizing Amazon for zon has used the terms of that deal will likely be heard on Thursday. azon did not say what its plans are
Rs 200 crores and suspending Fu- – and cited contract breaches by Fu- The filing is the latest twist in the for Cloudtail. Sources in the retail
ture deal is a landmark order and ture – to stall the $3.4 billion sale of long-running dispute between Am- sector said they would try to divide
Amazon stands fully exposed for its the Indian company’s retail assets to azon and Future. Though India’s Cloudtail’s business among multi-
mal-practices, and a bunch of lies at a rival. antitrust body suspended their 2019 ple other vendors. It’s not clear how
all levels together with continued vi- Multiple Amazon executives, deal last week, saying Amazon had much time regulators have granted
olation of laws and the rules.” including its India head, had been suppressed information when seek- Amazon to complete this process.

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