Amazon Sends Legal Notice to Future Group Over Reliance Deal

0

Amazon said on Wednesday it has sent a legal notice to a promoter of Future Group, alleging the Indian retailer breached the terms of its contract by signing a deal with Mukesh Ambani’s Reliance Industries.

The online retail giant last year acquired a 49 percent stake in Future Coupons, the promoter entity which owns a 7.3 percent interest in Future Retail, the operator of more than 1,500 stores in India including grocery chain Big Bazaar.

Amazon’s investment in Future Group came with contractual rights that include a right of first refusal and a non-compete-like pact, a source told ET Now, which first reported the news.

The e-commerce firm, in its legal notice, cited a contract arrangement that included “a restricted list” of companies Future was not supposed to enter deals with, ET Now said.

An Amazon spokesperson confirmed the company had started the proceedings.

Amazon, Reliance and Walmart’s Flipkart are in a battle to gain market share in India, where millions of middle class customers are newly adopting online purchases of food and groceries due to the COVID-19 pandemic.

Reliance said in August it would acquire the retail and wholesale business as well as the logistics and warehousing business of Future in a deal valued at $3.38 billion (roughly Rs. 24,771 crores).

The oil-to-telecoms group, whose retail operation already runs close to 12,000 stores, is expanding its so-called new commerce venture, which ties neighborhood stores to Reliance for online deliveries of groceries, apparel and electronics in a space currently dominated by Flipkart and Amazon’s Indian arm.

Future Group was not immediately available for comment. Reliance declined to comment.

© Thomson Reuters 2020


OnePlus 8T leaked specs look great but where is the cheaper Nord? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

For the latest tech news and updates, Install TechCodex App, and follow us on Google News,  Facebook, and Twitter. Also, if you like our efforts, consider sharing this story with your friends, this will encourage us to bring more exciting updates for you.

Source

Get real time updates directly on you device, subscribe now.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More