Amazon and Reliance engage in a law-suit

Amazon accused its partner Future Group of breaching terms of an agreement. It said that the latter had announced an asset sale deal with Reliance. The US-based e-commerce giant had bought 49% in one of Future’s unlisted firms last year and thus gained the right to buy the listed flagship Future Retail Ltd. But Future Group ran into financial problems when India went into a lockdown in March to curb the coronavirus outbreak.

However, Amazon was considering increasing its stake in Future Retail, but no such transaction took place, and Future cut a deal with Reliance instead. Thus infuriating the US-based e-tailer. The U.S. firm claims its contract with the Future unit barred a transaction with several persons and companies, including Ambani and Reliance.

Amazon announces the end of Great Indian Festival sale_TechnoSports.co.in

Ambani lead Reliance is India’s country’s biggest brick-and-mortar retailer. If it successfully acquires Future’s retail, wholesale, logistics, and warehousing units, it would almost double its foothold. The deal would give Reliance an unfair advantage over its rivals like Amazon and Walmart.

Hence, Amazon is hell-bent on standing its ground. Amazon must hold over the only billion people plus the consumer market, which is India. The company has also pledged to invest $6.5 billion in the Indian market. All this stands to show just how serious Amazon is about the Indian market.

However, Future’s lawyers said the entity selling the assets was not part of the contract between Amazon and the unlisted group firm in which the U.S. e-tailer acquired a stake. But the e-tailer’s counsel argued that the same owners controlled both the Future firms.

The final decision is yet to be reached. But one thing is for certain that, Amazon sure as hell doesn’t want Reliance to get its hands on Future group stakes. If the deal between Future and Reliance does not receive clearance, it could very well mean the Future Group unit’s end. But Amazon is not behind the shares of the Future group but is only aiming to stop the Reliance unit from establishing their dominance over the retail market.

source

Do check out:

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More like this

LATEST: Mukesh Ambani Net Worth as of February 2025

Indian business tycoon Mukesh Ambani is the managing director, chairman, and major shareholder of the conglomerate Reliance Industries,...
Jeff Bezos Net Worth, Biography, Age, Family, Spouse & more in 2023

Jeff Bezos Net Worth, Biography, Age, Family, Spouse and...

Jeff Bezos Net Worth, Biography, Age, Family, Spouse & more - Everything You Need to Know Did you...
Mukesh Ambani now ranked 4th on the Top Billionaires List_TechnoSports.co.in Mukesh Ambani net worth

A Deeper Look at Amazing Mukesh Ambani Net Worth...

Mukesh Ambani is one of the world's wealthiest and most influential people in the world and a...

Amazon Nova Act: The Dawn of Web-Native AI Agents...

Hey there, tech enthusiasts and AI aficionados! 👋 Ready to dive into the future of AI agents?...

Battleground: Amazon MX Player’s Epic Fitness Showdown Unveils Star-Studded...

Are you ready for the ultimate test of strength, strategy, and sheer willpower? Brace yourselves, fitness enthusiasts...

LATEST NEWS

ISL 2024-25 Semifinal: FC Goa vs Bengaluru FC – Preview, Prediction and Where To Watch The Match LIVE

FC Goa are set to welcome Bengaluru FC to the Jawaharlal Nehru Stadium in Goa for the second leg of their Indian Super League...

Top 5 Footballers Who Played for Both Manchester United and Manchester City

In this blog post, we’ll explore the fascinating stories of footballers who played for Manchester United and Manchester City. We’ll focus on primary keywords...

MS Dhoni’s Retirement Rumours Heat Up After Parents Show Up for CSK vs DC Match

The cricketing world stands at attention as fresh MS Dhoni retirement rumors sweep across stadiums and social media platforms alike. On April 5, 2025,...

Most Player of the Match Awards in IPL: Players with the Most Player of the Match (POTM) Awards Since 2018

Most Player of the Match Awards in IPL : Since 2018, the Indian Premier League (IPL) has seen some jaw-dropping performances, clutch finishes, and...

Featured