Legal Correspondent- Aryan Sharma
17-Dec-2021- A group of retailers called CAIT (Confederation of All India Traders) complained about the Amazon-Future agreement to the CCI. In July CCI issued a show cause notice to Amazon regarding their investment transaction with Future Coupons Pvt Ltd.
The Competition commission of India penalized Amazon.com NV Investment Holdings LLC (Amazon) a total of 202 crore In connection with its acquisition of a 49 percent stake in Future Coupons Private Limited (FCPL), it failed to notify CCI about some crucial details under Section 6(2) of the Competition Act 2002.
Te CCI said Amazon suppressed “The actual purpose and particulars” of the deal made in 2019 and they made a “establish False representation and suppression of material facts” and its is necessary to revisit the agreements of the deal till then the deal “Shall remain is abeyance”
The committee imposed the fine of 200cr to Amazon by the powers conferred under the Section 45 sub section (2) of the act and the commission imposed the maximum penalty of 1cr each under the provisions of Section 44 and Section 45 of the act for the suppression of scope and purpose.
The competition commission of India explained the 200cr penalty by saying “combination in terms under Section 6(2) and Section 43A of the act enables the commission to impose the penalty makes the commission to impose a penalty of 200cr of Amazon”.
Source:
Subscribe to get the full version of "The Nyayik Samachar" monthly at your Email for free.