The dispute between the American e-commerce giant Amazon and the Future Group has come to a new stage after the Competition Commission of India (CCI) had suspended the approval of the deal between the two parties that took place in 2019. On December 17, 2021, while staying the approval of the deal between Amazon and Future Group, CCI contended that the Amazon group had suppressed information while they were seeking clearance. In response to this order of the CCI, Amazon moved to the National Company Law Appellate Tribunal (NCLAT). Future Retail has used this order of CCI to claim that Amazon no longer has any legal basis to carry on the dispute. Furthermore, on January 5, a division bench of the Delhi High Court, to the relief of the Future Group, stayed the arbitration proceedings initiated by the Amazon Group against them in the Singapore International Arbitration Centre.
Amazon filed a Special Leave Petition in the Supreme Court on January 5 against this order staying arbitration proceedings initiated by it against Future Retail’s Rs. 24,713 crore merger deal with Reliance Retail. Amazon contends that the agreement between Future Group and Reliance is in contention with the non-competing clause of the agreement between Amazon and Future Group and has been seeking attachment of assets of the Future Group and the detention of the head of the Future Group, Kishore Biyani along with other members of the Group. So far, Amazon has tried very hard to stop the deal between The Future Group and Reliance retail and has used its deal with Future Coupon Private Ltd to conduct proceedings against the former.
Amazon has been supported by the Singapore International Arbitration Centre (SIAC) and other Indian Courts until the ordeal with CCI took place in December 2021. This has surely been a new advancement in the whole ordeal, however, there is still a long way to go from here. Both Amazon and Reliance are trying their best to get the outcome in their favour since the condition of their company in the market depends on it. The matter will most likely be heard in the NCLAT and the Supreme Court this week, until then one can only wonder, what the outcome would be.
Tags : Amazon, Supreme Court, High Court, NCLAT, Future Group, Acquisition, Arbitration