The CCI on November 28, 2019, gave approval to Amazon subsidiary NV Investment Holdings' proposal to acquire stake in Future Coupons. The proposed combination pertains to the acquisition by Amazon of approximately 49% of the voting and nonvoting equity shares of the Future Coupons.

The Proposed Combination consists of certain other constituent steps involving Future Coupons Limited ("FCL"), Future Corporate Resources Private Limited ("FCRPL"), and Future Retail Limited ("FRL").

In early November, the CCI had raised questions on combined market share and the procedure adopted by Amazon. CCI had asked Amazon over 40 questions related to the deal, adverse impact on the competition and its businesses.

In August, Amazon had agreed to make an equity investment in Future Coupons Limited for acquiring a 49% stake comprising both voting and non-voting shares. To avoid any legal hassles, Amazon had sought pre-emptive approval from CCI to go through with the deal even though it was not necessary to do so.

Last December, the Indian government in its FDI draft policy imposed some restrictions on online marketplaces. It barred e-comm marketplace from holding an equity stake more than 25% in a vendor/seller. It also imposed restrictions in controlling the vendor's inventory.

Since Future Retail sells several of its branded products on Amazon's online marketplace, Amazon's shareholding in FCL will be structured to ensure that the former takes up less than 25% equity shares with voting rights.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.