Arab Press

بالشعب و للشعب
Tuesday, Mar 17, 2026

Amazon vs Reliance: Why are two of the world's richest men in court?

Amazon vs Reliance: Why are two of the world's richest men in court?

A tussle over an Indian grocery company has pitted the world’s largest e-commerce business Amazon against India’s largest company Reliance.

The companies are at odds because they both made separate deals with the same Indian retailer - Future Group.

Analysts say the legal battle, in which an American behemoth is facing off against a local hero with a home field advantage, could shape the growth of e-commerce in India for years to come.

“I think this is massive. Amazon has never seen this kind of rival in any of their markets,” Satish Meena, a senior forecast analyst from the consultancy Forrester, told the BBC.

Amazon made its founder Jeff Bezos the world’s richest man (although he no longer holds the title) and the company has transformed retail globally. But Reliance Chief Executive Mukesh Ambani - who is India’s richest man - also has a history as a disrupter.

Industry analysts think his retail plans will pose a challenge to Amazon, and to Walmart-owned Flipkart too.

Amazon has been aggressively expanding its presence in India, where it hopes to cash in on a growing e-commerce market. Reliance also has plans to expand both its e-commerce and its grocery business.

What is the battle over Future Group?


Future Group recently made a deal to sell $3.4bn worth of retail assets to Reliance Industries earlier this year.

Since 2019, Amazon has owned a 49% stake in Future Coupons, which gives it an indirect ownership stake in Future Retail. Amazon argues that as a part of that purchase, Future Group was prevented from selling to a select group of Indian companies, including Reliance.

Mukesh Ambani has a home advantage against Amazon


Future Retail, which is a predominantly a bricks and mortar business, was hit hard by the pandemic, and contends that its deal with Reliance is essential to keeping the company afloat.

The most recent round in court went to Future Group. Last Monday, The Delhi high court reversed a decision from a week earlier that put the sale on hold.

Amazon has appealed.

What’s at stake?


If Reliance’s purchase is allowed to proceed, it would give its retail arm access to over 1,800 stores in more than 420 cities in India, as well as Future Group’s wholesale business and logistics arm.

“Reliance is a player which has the money, which has the influence which is required in this market. They don’t have the expertise to do e-commerce,” said Mr Meena.

If Amazon succeeds, it may gain the upper hand, slowing a key competitor’s plans to push into e-commerce.

Analysis: Nikhil Inamdar, BBC News Mumbai


This high-octane tussle between two of the world's richest men is an indication of how high the stakes are for Mr Bezos and Mr Ambani in a market often described as the last growth frontier. It is also evidence of how tough it is becoming for foreign players to do business in India.

Amazon is only the latest in a list of high profile foreign companies unable to get their Indian partners to comply with emergency orders from overseas arbitrators, and to face flip-flops from the local courts. India recently lost two major international arbitration awards in tax dispute cases against Cairn Energy Plc and telecoms major Vodafone, and has challenged the ruling against the latter.


"There is no doubt that foreign investors will view this situation, and similar such occurrences with dismay. The decision will send a negative signal on India being a reliable place in which to invest and do business," Rupa Subramanya, a Distinguished Fellow at the Asia Pacific Foundation of Canada, told the BBC.

Amazon is unlikely to give up without a fight though, and not least because the acquisition would give Reliance what analysts have termed an "unparalleled advantage".

But pitted against a home player like Reliance, the playing field is already uneven for Amazon. Government rules prohibit foreign e-commerce companies from keeping their own inventory or selling private labels directly to consumers - widely seen as a protectionist policy that favours local retailers. Amazon has also been facing increasing pushback via tighter norms on data use and growing calls for self-reliance by India's prime minister Narendra Modi.

Eyes on the prize


Amazon and Reliance are willing to fight over the Indian market because of its unparalleled potential for growth.

“There’s no other market after the US and China that gives them this type of opportunity,” Mr Meena said.

India’s retail sector is worth about $850bn, said Mr Meena, but at the moment only a small fraction of that is e-commerce. But Forrester tips the Indian market to grow at 25.8% a year to reach $85bn by 2023.

As a result, e-commerce is becoming an increasingly crowded and competitive market. In addition to Amazon, WalMart has partnered with home-grown e-commerce brand FlipKart. Even Facebook has become involved, paying $5.7bn for a 9.9% stake in Jio Platforms, owned by Reliance Industries.

Food fight


Groceries are the biggest prize in retail in India, because they account for about half of all spending there. Currently, it is typically non-perishable items such as smartphones that dominate e-commerce.

But the pandemic accelerated the shift towards e-commerce for groceries, in part because India had one of the strictest lockdowns.

“People got stuck at home. So more and more had to start using online services,” said business consultancy AT Kearney’s head of Consumer and Retail for Asia Himanshu Bajaj.

“Grocery is becoming a major battleground, and with Covid even more so,” he said.


So what is Jeff Bezos going to do now?


Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia Targets South African Professionals in New Recruitment Drive Amid Regional Uncertainty
Formula One Faces Major Financial Hit as Bahrain and Saudi Arabian Grands Prix Cancelled Amid Middle East Conflict
U.S. and Saudi Firms Launch Local Production of Attritable Drone Systems in Saudi Arabia
Saudi Arabia and UAE Warn Rising Gulf Tensions Could Endanger Regional Security
Saudi Arabia Rejects Claims It Encouraged Prolonged War With Iran
Saudi Arabia to Host World’s Largest Single-Cell Protein Plant as Food Security Push Accelerates
Saudi Crown Prince Urges Trump to Continue Military Pressure on Iran
Iran Intensifies Drone Campaign Against Saudi Arabia as Gulf Conflict Escalates
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Washington State Pilot Among Six U.S. Airmen Killed in Military Aircraft Crash Over Iraq
Severe Storm Threat Looms Over Washington as Tornado Risk and Damaging Winds Target Mid-Atlantic
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Saudi Stocks Edge Lower as Tadawul All Share Index Slips Slightly at Market Close
Iranian Missile and Drone Strike Targets Saudi Arabia’s Prince Sultan Air Base Hosting US Aircraft
Saudi Air Defenses Intercept Drone Over Eastern Province as Iranian Strike Campaign Intensifies
Middle East War Reshapes Gulf Economies as Saudi Arabia and Oman Gain Strategic Leverage While UAE Faces Economic Shock
Iranian Ambassador in Riyadh Blames ‘Enemies’ for Attacks Across the Gulf
Israeli Envoy Ron Dermer Reportedly Visits Saudi Arabia for Discussions on Potential Lebanon Talks
Formula One Cancels Bahrain and Saudi Arabian Grands Prix Scheduled for April
Iran’s Ambassador in Riyadh Rejects Claims Tehran Targeted Saudi Oil Facilities
Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ in Major Push for Data-Driven Economy
Saudi Arabia’s 2018 Budget Signals Strong Push for Non-Oil Economic Growth
Pakistan Envoy in Riyadh Says Regional Diplomacy Intensifying to Prevent Wider Middle East War
Saudi Arabia Intercepts Dozens of Drones as Regional Strikes Kill Two in Oman
Saudi Arabia Redirects Oil Exports to Red Sea Ports as Strait of Hormuz Tensions Escalate
Saudi Arabia Intercepts Missile and Drone Barrage as Regional Conflict Intensifies
Iran Expands Drone and Missile Campaign Across Gulf as Conflict With US and Israel Intensifies
Muslims Worldwide Await Saudi Moon Sighting to Confirm Eid al-Fitr 2026 Date
F1 Calendar Faces Major Disruption as Middle East Conflict Threatens Bahrain and Saudi Races
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Saudi Arabia Slashes Oil Output as Strait of Hormuz Crisis Cuts Deep Into Gulf Revenues
Saudi Arabia’s Cultural Scene Presses Ahead as Nation Navigates Regional War
Saudi-Pakistan Defence Pact Faces Real-World Constraints as Iran War Escalates
Saudi Arabia Offers Two Million Barrels of Crude From Red Sea as War Disrupts Gulf Exports
Formula One Faces Tens of Millions in Lost Revenue if Bahrain and Saudi Arabia Races Are Cancelled
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Middle East War
Saudi Arabia Downs Dozens of Iranian Drones in Major Defensive Operation
Saudi Arabia Cuts Oil Output by About Twenty Percent as Iran War Disrupts Gulf Energy Flows
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Iran War
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Saudi Arabia Launches Royal Institute of Anthropology to Examine Social Transformation
Pakistan’s Prime Minister Shehbaz Sharif Arrives in Saudi Arabia for High-Level Talks
×