Amazon wins arbitration case against Future Group in retail dispute
30 June, Mumbai 2025
Ruling in favor of Amazon, the Singapore International Arbitration Centre (SIAC) has confirmed, Future Group violated a contract by attempting to sell its retail business to Reliance Industries in 2020. This decision marks a significant development in the multi-year legal battle between the e-commerce giant and the Indian conglomerate.
The dispute began in 2020 when Future Group, facing financial distress from the pandemic and owning major retail chains like Big Bazaar, agreed to sell assets worth $3.4 billion to Reliance, a rival to Amazon. However, Amazon had previously invested $200 million in Future Coupons, a promoter entity of Future Group, which gave it indirect stakes in Future Retail (FRL) and, crucially, contractual rights to block such a sale. Amazon's agreement with Future specifically named Reliance Retail as an entity to whom Future could not sell its assets without consent.
In October 2020, Amazon successfully approached SIAC, securing an emergency arbitration order that halted the Future-Reliance deal. This initial ruling triggered a flurry of legal petitions and counter-petitions in Indian courts.
The complex legal saga also saw the Competition Commission of India (CCI) in December 2021 suspend its approval of Amazon's 2019 deal with Future, accusing Amazon of suppressing information and violating Indian foreign investment laws. Amazon subsequently appealed this decision. Adding another layer to the conflict, Reliance, which had largely stayed out of the public dispute, took control of hundreds of Future stores in February 2022, citing non-payment of rent. Future Group, however, denied any wrongdoing, arguing that Amazon was illegally trying to control its retail business and warning of liquidation if the Reliance deal collapsed.
Amazon has invested $6.5 billion in India, with its Future partnership initially aimed at boosting its online grocery delivery portfolio. In a confidential filing, Amazon had argued that Reliance's consolidation with Future would ‘further restrict competition in the Indian retail market.’
Notably, Amazon India's legal head had reportedly sought significant compensation from Future Group to withdraw its objections.
