Future Retail Asks Delhi Court to Declare Singapore Arbitration Process With Amazon Illegal

Future Retail argues that India's antitrust agency, the Competition Commission of India, has suspended a 2019 deal used by Amazon to assert rights over Future.

Future Retail Asks Delhi Court to Declare Singapore Arbitration Process With Amazon Illegal

Amazon has argued Future violated terms of its 2019 deal in deciding to sell retail assets to Reliance

Highlights
  • CCI in December suspended the 2019 deal
  • The case will likely be heard by the court later on Monday
  • The long-running dispute is being heard by a Singapore arbitration panel
Advertisement

India's Future Retail has asked a New Delhi court to declare arbitration proceedings in Singapore with Amazon.com as illegal, arguing that India's antitrust agency had suspended a 2019 deal used by Amazon to assert rights over Future.

Amazon successfully used the terms of its toehold $200 million (roughly Rs. 1,485 crore) investment in debt-laden Future to block the Indian retailer's attempt to sell retail assets to a rival, alleging breach of certain contracts.

But the Indian antitrust body, the Competition Commission of India, in December suspended the 2019 deal saying Amazon suppressed information while seeking approvals.

The long-running dispute is being heard by a Singapore arbitration panel, but both sides have been fighting parallel cases in Indian courts to enforce or overrule certain decisions taken by the arbitrator.

In the latest Future Retail filing in New Delhi, the company argues that since the 2019 deal no longer has antitrust approval, it has "no legal existence" in India and Amazon can no longer assert any of its rights.

The "continuation of the entire arbitration proceedings is a perpetuation of illegality," Future said in its filing dated December 31.

The case will likely be heard by the court later on Monday.

Future and Amazon did not respond to a request for comment.

The filing also showed that Future's appeal to the Delhi High Court comes after the Singapore arbitration panel did not agree to its immediate demands to terminate the proceedings, saying arguments would continue this month.

A source with direct knowledge said Amazon had told the Singapore arbitrator in December that the CCI's suspension of the 2019 deal does not mean the transaction is void, as the watchdog has allowed Amazon to reapply for clearances.

Amazon has long argued that Future violated the terms of its 2019 deal in deciding to sell retail assets to Reliance, and the US company's position has so far been backed by the Singapore arbitrator and Indian courts. Future denies any wrongdoing.

But people familiar with the case say the antitrust suspension could make it easier for Future to push through its attempts to sell retail assets to Reliance and weaken Amazon's legal position.

The dispute over Future Retail, which has more than 1,500 supermarket and other outlets, is the most hostile flashpoint between Jeff Bezos' Amazon and Reliance, run by India's richest man Mukesh Ambani, as they try to gain the upper hand in winning retail consumers.

© Thomson Reuters 2021


What are the best games of 2021? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Crypto Miners Blamed for Power Outages in Russia’s Irkutsk, 1,100 Cases of ‘Gray Mining’ Emerge
Netgear Nighthawk RAXE300 Tri-Band Wi-Fi 6E Router With Six Antennas Launched
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »