wordpress blog stats
Connect with us

Hi, what are you looking for?

Amazon serves Future Group subsidiary with legal notice after Reliance Retail acquisition: Reports

Amazon has accused a Future Group subsidiary of breach of contract and slapped it with a legal notice after the latter announced it would sell most of its retail, wholesale and logistics businesses to Reliance Retail, ET Now and Business Standard reported, citing anonymous sources. In 2019, Amazon had purchased a 49% stake in Future Coupons, the Future Group’s promoter entity, for ₹1,500–2,000 crore.

Under that deal, Amazon reportedly had a right of first refusal against deals with competitors like Reliance Retail. Amazon is said to be arguing that by selling off its wholesale, logistics and retail businesses to Reliance Retail, the Future Group violated its agreement with Amazon. Amazon confirmed the legal notice to TechCrunch but declined to go into specifics. We have reached out to Amazon, Reliance, and the Future Group for comment. Curiously, Amazon is reportedly exploring a multibillion dollar investment into Reliance Retail.

Reliance Retail’s acquisition of the Future Group’s businesses, which includes Big Bazaar and FBB, is a lump sum transaction at ₹24,713 crore. The deal is awaiting regulatory approval at the Competition Commission of India, and legal proceedings by Amazon, which may reportedly trigger arbitration, might prevent the transaction from taking place immediately. In a filing with the CCI, the companies said, “The proposed transaction will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India, irrespective of the manner in which the relevant markets are defined.”

Read more:

Advertisement. Scroll to continue reading.
Written By

I cover the digital content ecosystem and telecom for MediaNama.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

You May Also Like

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ