The Indian Supreme Court ruled on August 6 that Amazon has won a major victory in a dispute. The company tried to prevent its partner Future Group from selling $3.4 billion in assets to match Reliance Industries. The bench composed of two Supreme Court judges stated that the Singaporean authorities made an interim decision in October to suspend transactions after discovering the reasons for Amazon’s objection, which is legal and enforceable in India.
You will see the results of this fight, which includes the two richest people in the world, Amazon’s Jeff Bezos and Reliance Mukesh Ambani, who reshaped the Indian pandemic shopping industry and decide whether Amazon can cushion Reliance. The dominance of nearly one trillion dollars. nation. Dollar retail market. Future Retail’s stock price rose by 6% before the decision was made, but plummeted by 10% after the order was issued and pushed down the electrical switches of the Bombay Exchange. Reliance Industries shares fell 2.3%. Future Retail said in a statement that it has been “informed that it has legally available remedies and will exercise these remedies.”
It did not elaborate on legal alternatives, but said it would take steps to complete the transaction and protect the interests of its stakeholders and its employees. Amazon said in a statement that it welcomed the court’s decision and added: “We hope this will speed up the resolution of disputes with Future Group.” Amazon and Future have been in conflict with the law over Future Group’s transactions. A US company accused the Indian group of ignoring pre-existing transactions when providing assets to Reliance. Denied any wrongdoing in the future. Amazon believes that the order is very crowded, and the future thinks it is not. When Amazon invested US$200 million in the Future division in 2019, the two parties agreed to use Singaporean arbitrators to resolve disputes. The arbitration process is still in progress.
India strictly regulates its retail and e-commerce sectors. This makes it difficult for foreign giants such as Wal-Mart and Amazon to quickly expand into one of the fastest-growing consumer markets in the world, whose retail structure is dominated by brick-and-mortar retailers. However, any form of cooperation between Amazon and Reliance in the future will depend on how much disadvantages they will have now. The two players agreed to continue their referee battle at SIAC. Bezos is not currently the power director of Amazon. He has retired from the position of CEO of Amazon in July. However, his successor, Andy Jassy is unlikely to look away from the precious Indian market.