India's antitrust body halts Amazon's 2019 deal with retailer Future
$Amazon(AMZN.US$ India's antitrust agency on Friday suspended Amazon.com's 2019 deal with Future Group, potentially denting the U.S. company's attempts to block the sale of Future's retail assets to an Indian peer.
The regulator ruled that the U.S. e-commerce group had suppressed information while seeking regulatory approval on an investment into Indian retailer Future Group two years ago.
The ruling by the Competition Commission of India (CCI) could have far-reaching consequences for Amazon's legal battles with now estranged partner Future.
Amazon has for months successfully used the terms of its toehold $200 million investment in Future in 2019 to block the Indian retailer's attempt to sell retail assets to Reliance Industries for $3.4 billion.
The regulator's 57-page order said it considers "it necessary to examine the combination (deal) afresh," adding its approval from 2019 "shall remain in abeyance" until then.
The CCI's order said Amazon had "suppressed the actual scope" of the deal and had made "false and incorrect statements" while seeking approvals. The CCI order imposed a penalty of around 2 billion rupees ($27 million) on the U.S. company.
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