Supreme Court Imposes Stay on CCI’s Order Passed Against Amazon
The Supreme Court has stayed the Competition Commission of India's (CCI) order imposed on Amazon on 25th April, for recovery
Supreme Court Imposes Stay on CCI’s Order Passed Against Amazon
The Supreme Court has stayed the Competition Commission of India's (CCI) order imposed on Amazon on 25th April, for recovery of Rs. 202 crores as penalty imposed, as a result of its 2019 acquisition of 49% stake in a Future Group entity.
The coram comprised of Justices Dinesh Maheshwari and Sanjay Kumar while taking note of the totality of the circumstances in the case ordered, “It is considered appropriate and hence provided that no coercive steps shall be taken in relation to the notice dated April 25 against the appellant (Amazon) until the next date of hearing on July 17.”
While Amazon seeking for stay on the recovery proceedings, Additional Solicitor General N Venkataraman, appearing for the Competition Commission told the Apex Court that the officers concerned had been advised appropriately about the pendency of the matter before the Supreme Court.
The case dates back to 17 December, 2021 when the CCI had suspended its approval accorded more than two years back to the e-commerce giant to acquire a 49% stake in Future Coupons (FCPL), following a review of allegations of concealment of information while seeking regulatory nod for the deal.
The competition regulator had also imposed a Rs. 202 crores penalty for allegedly not being upfront about the actual scope and purpose of the deal and had ordered Amazon to pay the requisite amount by mid-February 2022.
The penalties on Amazon – Rs. 200 crores and Rs. 2 crore - were imposed separately under different sections of the law relating to reporting obligations of parties involved in a transaction.
The Future Group and Amazon have been engaged in legal conflict since 25th October, 2020, when the Singapore’s Emergency Arbitrator had issued an interim ruling restraining Future Group (FRL) from moving further with their agreement with Reliance Retail.
While issuing the stay order, the Supreme Court proceeded to list the matter for 17th July, 2023.
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