Supreme Court Sets Aside ₹202 Crore Penalty on Amazon
In a major legal victory for e-commerce giant Amazon India, the Supreme Court has set aside a ₹202 crore penalty previously imposed on the company by the Competition Commission of India (CCI). The penalty was related to Amazon’s 2019 investment in Future Coupons Private Limited (FCPL), which CCI had later suspended, accusing Amazon of hiding the true scope of the deal and its intent to control Future Retail.
The bench of the Supreme Court ruled that the CCI’s decision to suspend the approval and impose the fine lacked sufficient legal basis under the Competition Act. The court held that the commercial contracts signed between Amazon and Future Group had been properly disclosed during the initial approval process, and the regulatory body could not retroactively penalize the company based on subsequent commercial disputes.
End of a Prolonged Corporate Legal Battle
The ruling brings an end to a prolonged legal battle that has dragged in Amazon, Future Group, and Reliance Industries. Amazon had used its investment in Future Coupons to block Future Retail’s proposed ₹24,713 crore sale to Reliance Retail, leading to arbitration in Singapore and litigation in Indian courts. While Future Group’s retail assets have since faced insolvency proceedings, the Supreme Court’s decision removes a major regulatory liability from Amazon’s Indian operations.
