Competition Commission of India approves Reliance-Future deal; Amazon gets a big shock

Competition Commission of India approves Reliance-Future deal; Amazon gets a big shock

 Competition Commission of India approves Reliance-Future deal; Amazon gets a big shock

The Reliance Group in August signed a deal of Rs 24,713 crore to acquire the retail, wholesale, warehousing and logistics business of Future Group. Amjon is opposing the deal and a Singapore arbitration court ruled in its favor.

American giant e-commerce company Amazon (Amazon) has received a major setback. The Competition Commission of India (CCI) has approved the deal between Reliance Industries and Future Group.

Significantly, Reliance Group in August signed a deal of Rs 24,713 crore to acquire the retail, wholesale, warehousing and logistics business of Future Group.

 Amazon is opposing the deal and a Singapore arbitration court ruled in its favor.

CCI on Friday tweeted, "The deal was approved for the acquisition of Reliance Retail Ventures Ltd and Reliance Retail & Fashion Lifestyle Ltd of Future Group's retail, wholesale, warehousing and 

 Amazon is fighting a legal battle against the Future-Reliance deal. The matter between Future Group and Amazon is also under consideration in Delhi High Court. On Friday, the Delhi High Court reserved its decision on the Future Group's plea to stop interfering in the Amazon deal. 

The court has given time till November 23 to the concerned parties to submit their written response to it.

Amazon has also complained to Sebi about this deal. The Singapore Arbitration Court, in its interim decision, while reviewing the deal of Rs 24,713 crore between Future Group and Mukesh Ambani-led Reliance Industries, stayed it.


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Deal with Reliance was done in August this year

 This will give Reliance Future Group access to over 1,800 stores of Big Bazaar, Easyday and FBB, spread across 420 cities in the country. This deal has been finalized in 24713 crores.

But the US e-commerce company Amazon questioned the deal between Reliance Industries Limited (RIL) and Future Group. Amazon alleges that Future Group has broken contract rules. 

In this regard, Amazon also sent a legal notice to the promoters of Future Group.

What is the relationship between Future and Amazon

Last year, Amazon bought a 49 percent stake in Future Coupons Ltd, an unlisted company of Future Group. Also, Right-to-First Refusal was also traded in the group's listed company Future Retail Limited.

This deal means that Amazon will get the right to buy the first stake in Future and only on its refusal can Future sell it to anyone. 

Amazon claims that its deal with Future Coupons prevents the group from dealing in Future Retail.

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