Amazon tells CCI its investment in Future Coupons was compliant with FEMA

In the illustrious altercation between Future and Amazon, Future has on numerous occasions claimed that Amazon’s investment in its Coupons arm in 2019, was a misleading action. For the matter, both the Enforcement Directorate (ED) and the Competition Commission of India (CCI) have sought Amazon’s response, to which Amazon recently told CCI that it did not hide any fact related to its deal with Future Coupons (FCL).

It reportedly claimed that its investment in FCL was compliant with foreign investment laws, and scrapping the deal will be anti-competitive.

According to a 60-page confidential document seen by Reuters, Amazon also said that revocation of the 2019 deal between Amazon and FCL is “bound to send a message to foreign investors that the economy and regulatory landscape of India are still not developed enough to provide stability and certainty to foreign investments”.

In 2019, Amazon bought 49% of Future Coupons for $200 Mn. Through this, it acquired 3.58% in Future Retail — the business that Reliance will be acquiring, if the deal goes through. The deal obviously did not go well with Amazon, and the matter escalated to the Singapore International Arbitration Centre (SIAC) where the hearing was ruled in favour of Amazon. In 2021, as the brawl between Amazon and Future Group intensified, the former accused the latter of financial irregularities.

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