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Appeal To Cancel Reliance-Future Deal Approval Made To India Antitrust Body By Amazon


28/11/2021


Appeal To Cancel Reliance-Future Deal Approval Made To India Antitrust Body By Amazon
Amazon has approached India's antitrust regulator to cancel its approval of Future Retail's $3.4 billion deal to sell its retail assets to Reliance and Reliance, saying that they were "illegally obtained", violating an order that suspended the deal as a letter obtained by Reuters documents.
 
The deal's approval was the result of a "nullity in the eyes of law" because an arbitrator's ruling was in force, as per the letter that was sent to Amazon.com Inc to the Competition Commission of India (CCI) in the last week.
 
The fight among two richest males, Amazon founder Jeff Bezos and Reliance Industries Ltd boss Mukesh Ambani, has created a competition to be the top contender in India's growing and nearly trillion-dollar retail industry.
 
The winner of the battle to win Future Retail Ltd, India's second largest retailer and Amazon's disgruntled regional partner will take first place on the track to satisfy the needs of more than 1 billion people.
 
CCI, Future Group, CCI, Amazon, Future Group and Reliance have not responded to inquiries for comment.
 
Future has declared that the arbitrator's suspension ruling was not valid, however Indian courts have refused to invalidate it.
 
If the regulator accepts the letter previously not reported that could be a significant loss for the oil-to telecom conglomerate Reliance.
 
Amazon obtained an injunction against the deal from an Singapore arbitrator in the year 2000 in the year 2000, claiming Future was in breach of contracts that prohibited Future from selling its assets to other entities such as Reliance.
 
However, the CCI was later able to approve the deal.
 
Future was misleading the CCI and continued to ask an approval to the transaction, Amazon stated in the note dated Wednesday, describing the injunction an "brazen attempt to subvert the rule of law".
 
Amazon demanded an individual hearing with the CCI to present its case.
 
The letter comes at a time when Amazon is also fighting allegations that it misrepresented the facts and misrepresented information when it sought antitrust clearance to sign a 2019 agreement together with Future Group.
 
Amazon has, so far, been successful in using this contract to stop Future's agreement with Reliance.
 
(Source:www.fxempire.com)


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