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What is the story about?
The Supreme Court has set aside a ₹200 crore penalty imposed on Amazon by the Competition Commission of India (CCI) over allegations that the company suppressed material information while seeking approval for its 2019 investment in Future Group.
The apex court also quashed an order of the National Company Law Appellate Tribunal (NCLAT) that had upheld the CCI’s penalty on the e-commerce major.
In its ruling, the Supreme Court directed that any amount deposited by Amazon in connection with the penalty be refunded.
The case relates to Amazon’s 2019 investment in Future Coupons, a promoter entity of Future Retail.
The CCI had said that Amazon suppressed material information and did not fully disclose the scope and purpose of the transaction while seeking regulatory approval.
In December 2021, the CCI suspended its earlier approval for the deal, directed Amazon to file a fresh notice and imposed a ₹200 crore penalty under provisions of the Competition Act for alleged suppression of facts and failure to properly notify the transaction. The NCLAT had substantially upheld the CCI’s findings in 2022, as per Bar and Bench report.
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The apex court also quashed an order of the National Company Law Appellate Tribunal (NCLAT) that had upheld the CCI’s penalty on the e-commerce major.
In its ruling, the Supreme Court directed that any amount deposited by Amazon in connection with the penalty be refunded.
The case relates to Amazon’s 2019 investment in Future Coupons, a promoter entity of Future Retail.
The CCI had said that Amazon suppressed material information and did not fully disclose the scope and purpose of the transaction while seeking regulatory approval.
In December 2021, the CCI suspended its earlier approval for the deal, directed Amazon to file a fresh notice and imposed a ₹200 crore penalty under provisions of the Competition Act for alleged suppression of facts and failure to properly notify the transaction. The NCLAT had substantially upheld the CCI’s findings in 2022, as per Bar and Bench report.
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