According to a letter seen by Reuters, Amazon has asked the Indian antitrust regulator to revoke its approval for Future Retail to sell retail assets of US$3.4 billion (approximately 25,470 crore) to Reliance, saying it was “illegal acquisition”. Violated the order to suspend trading.
According to a letter sent by Amazon to the Competition Commission of India (CCI) last week, the approval of the transaction “is legally invalid” because the arbitrator’s order is still valid.
The battle between Amazon founder Jeff Bezos and Reliance boss Mukesh Ambani, the two wealthiest people in the world, marked excellent competition in India’s booming nearly trillion-dollar retail market.
The winner of the future retail battle between India’s second-largest retailer and Amazon’s estranged local partner will gain a leading position in the competition to meet the daily needs of more than one billion people.
CCI, Amazon, Future Group and Reliance did not respond to requests for comment.
Future stated that the arbitrator’s suspension order was invalid, but the Indian court refused to overturn it.
If the regulator agrees to the previously unreported letter, this will be a major setback for Reliance, the oil-to-telecom group.
Amazon won a Singaporean arbitrator’s injunction on the transaction last year, accusing Future of violating a contract that prevented it from selling assets to entities including Reliance.
But CCI later approved the transaction.
Amazon said in a letter dated Wednesday that Future misled CCI and continued to seek approval for the transaction, calling the ban a “shameless attempt to subvert the rule of law.”
Amazon requires CCI to hold a personal hearing to prove its reasons.
© Thomson Reuters 2021