Claims Made By Amazon:
Amazon has approached the Singapore International Arbitration Centre (SIAC) because it stands against the Future Group. The American multinational technology company has hired law firm AZB Partners to handle the case. Also, the Future Group has hired Harish N. Salve for the arbitration.
The Future Group has sold its Rs. 24,700 crore worth asset to the Reliance Industries Limited. Amazon claims that in the year 2019. There was an investment agreement in Future Coupons Ltd. In the agreement, the Kishore Biyani group was prohibited from building a pact with the Reliance company.
The mention of Mukesh Ambani’s company was written explicitly as a necessary condition for the deal that Amazon had with the Future group. Amazon knew that Reliance would be one of its major competitors in the global retail market. So, it was for it to stop the Future Group from sealing any other deal with the Reliance.
Why Doesn’t Amazon Want Reliance-Future Deal To Happen?
It is believed that the Reliance-Future deal will be impacted dramatically from this claim made by Amazon. We can see how Reliance has been trying to enter into the online retail space to compete with companies such as Amazon and Flipkart. Likewise, Amazon is also trying to get into offline retail space and dominate the market.
To help take small Indian businesses online, Amazon’s founder, CEO and president Jeff Bezos pledged $1 billion in new investments. Last year, Amazon brought about 5% in the Future Retail. This was after buying 49% of Future Coupons for ₹1,500 crores. Also, Amazon claims that Future doesn’t have the rights to sell its share to any other retails like Reliance.
A Legal Fight Over The Matter:
A panel of 3 to 5 members will be made by both the groups in the upcoming weeks. Amazon wants the Future group to answer why it didn’t respond to the queries of Amazon on its potential deal with Reliance. A lot of restrictions have been mentioned in the agreement to favour the company. Let us see what decision is going to be taken by the SIAC in this matter.