London Daily

Focus on the big picture.
Thursday, Jan 22, 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

0:00
0:00
Close
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
Will AI Finally Make Blue-Collar Workers Rich—or Is This Just Elite Tech Spin?
Prince William to Make Official Visit to Saudi Arabia in February
Prince Harry Breaks Down in London Court, Says UK Tabloids Have Made Meghan Markle’s Life ‘Absolute Misery’
Malin + Goetz UK Business Enters Administration, All Stores Close
EU and UK Reject Trump’s Greenland-Linked Tariff Threats and Pledge Unified Response
UK Deepfake Crackdown Puts Intense Pressure on Musk’s Grok AI After Surge in Non-Consensual Explicit Images
Prince Harry Becomes Emotional in London Court, Invokes Memory of Princess Diana in Testimony Against UK Tabloids
UK Inflation Rises Unexpectedly but Interest Rate Cuts Still Seen as Likely
AI vs Work: The Battle Over Who Controls the Future of Labor
Buying an Ally’s Territory: Strategic Genius or Geopolitical Breakdown?
AI Everywhere: Power, Money, War, and the Race to Control the Future
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Arctic Power Grab: Security Chessboard or Climate Crime Scene?
Starmer Steps Back from Trump’s ‘Board of Peace’ Amid Strained US–UK Relations
Prince Harry’s Lawyer Tells UK Court Daily Mail Was Complicit in Unlawful Privacy Invasions
UK Government Approves China’s ‘Mega Embassy’ in London Amid Debate Over Security and Diplomacy
Trump Cites UK’s Chagos Islands Sovereignty Shift as Justification for Pursuing Greenland Acquisition
UK Government Weighs Australia-Style Social Media Ban for Under-Sixteens Amid Rising Concern Over Online Harm
Trump Aides Say U.S. Has Discussed Offering Asylum to British Jews Amid Growing Antisemitism Concerns
UK Seeks Diplomatic De-escalation with Trump Over Greenland Tariff Threat
Prince Harry Returns to London as High Court Trial Begins Over Alleged Illegal Tabloid Snooping
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
×