London Daily

Focus on the big picture.
Sunday, Jan 04, 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
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
×