India watchdog accuses Amazon of concealing facts in deal for Future Group unit

India’s antitrust regulator has taken aim at retail giant Amazon

According to Reuters, the watchdog accused Amazon of concealing facts and making false submissions when it sought approval for a 2019 investment in a Future Group unit.

That letter complicates Amazon’s bitter legal battle with Future Group over the Indian firm’s decision to sell its retail assets to Reliance Industries.

That matter that is now before India’s Supreme Court

The US-based retail giant has argued that terms agreed upon in its 2019 deal had been misrepresented.

Amazon says the deal to pay $192 million for a 49% stake in Future’s gift voucher unit was to prevent its parent, Future Group, from selling its Future Retail Ltd business to Reliance.

Reuters states that in the letter dated June 4, the Competition Commission of India (CCI) stated that Amazon hid factual aspects of the transaction.

The CCI claimed Amazon did this by not revealing its strategic interest in Future Retail when it sought approval for the 2019 deal.

“The representations and conduct of Amazon before the Commission amounts to misrepresentation, making false statements and suppression or/and concealment of material facts,”

It also noted that its review of the submissions made had been prompted by a complaint from Future Group.

In the four-page letter, a so-called “show cause notice”, the CCI asked Amazon why it should not take action and penalise the company for providing false information.

Amazon has yet to respond, according to a source with direct knowledge of the matter who declined to be identified as the letter has not been made public.

Amazon said in a statement to Reuters it had received a letter, was committed to complying with India’s laws, and would extend its full cooperation to the CCI.

“We are confident that we will be able to address the CCI’s concerns,”

Representatives for Future and the CCI did not respond to Reuter’s requests for comment.