Amazon Defends CCI Filing On Deal With Future Group
Amazon argued that CCI did not adequately consider the filings and the replies in the order suspending the approval
In its order suspending approval to the 2019 transaction with Future Coupons Pvt., the Competition Commission of India has cherry-picked lines from the filing documents, Amazon.com NV Investment Holdings LLC argued in court.
The regulator did not adequately consider Amazon's replies before passing the suspension order, Senior Advocate Gopal Subramanium told the National Company Law Appellate Tribunal on Tuesday.
In December, the CCI had suspended the approval to Amazon’s 2019 deal with Future Coupons and imposed a Rs 200-crore penalty on the U.S. e-commerce major, saying it failed to adequately identify and notify its strategic interest in Future Retail Ltd.
Amazon has challenged this order on grounds that there was no misrepresentation or suppression of information back in 2019 which merits the CCI revisiting its approval.
Suspension Order Contains Selective Quotation: Amazon
So far, Amazon has questioned the CCI's power to revisit the 2019 approval, and examine the submissions made before other courts. In its notice, the regulator had pointed to contradictory statements by Amazon before the CCI and the arbitral tribunal as well as courts on several issues, namely the purpose of the transaction, nature of rights in Future Retail, etc.
During the hearing on Tuesday, Subramanium added to these arguments. He read out portions from the 2019 filing and the internal correspondence mentioned in CCI’s suspension order. He contested the regulator's conclusion that there was a stark contrast between what Amazon's internal emails have revealed and the disclosures made in the filings.
"Whatever was discussed in the correspondences was disclosed to the commission," Subramanium said.
In its December order, the CCI had noted that the filing documents did not disclose the possibility of Amazon having a "foot in door" in the Indian retail sector, acquiring strategic rights over Future Retail or entering into any commercial partnership with Future Retail to expand Amazon's ability in ultra-fast delivery services — all of which was mentioned in the email exchanges between Amazon's officials, the regulator had noted.
This paragraph [in the CCI's December order] is contrary to the record because all this, I have disclosed.Amazon's Counsel Gopal Subramanium
All the relevant details and agreements were disclosed before the commission in the filings while seeking the approval, Subramanium reiterated.
The NCLAT will continue to hear Amazon's arguments on Thursday.