Prione business services, joint ventures between Catamaran and Amazon led by Narayan Murthy, will be acquired by Amazon. Subsidiaries who are fully owned by Prione, Cloudtail India is one of the largest sellers in this country.

“Amazon will acquire Catamaran’s share ownership in Prione in accordance with applicable laws including all assets and liabilities,” said the two companies in a joint statement on December 22.
“The business of a joint venture will continue under current management leadership and after receiving regulatory approval, the Priorore and Cloudtail Council will take steps to complete the transaction in accordance with applicable law,” added the statement.
So far the two companies together have a high business service, which has a subsidiary that is fully owned by Cloudtail India has repeatedly come under the scanner for alleged violations of foreign investment norms (FDI).
On August 9 this year Amazon and Catamaran announced their decision not to continue the joint venture outside the end of the present in May 2022. This decision came after the Supreme Court’s decision to enable the Indian Competition Commission (CCI) to conduct an investigation into alleged anti-competitive practices Amazon.
Whereas for now Cloudtail will continue as a seller in Amazon, it is not immediately clear whether it can continue as a post of this acquisition since the e-commerce bars marketplaces from having ownership in the company run by their sellers.
In India, e-tailers are known to have a preferred set of vendors who get the majority of businesses produced by these companies.
In 2018, the government had come up with the press Note 2, revised existing press records 3. It asked the market to ensure that they would not sell their group company products on their platform.
After clarification, Amazon, who was also suspected to get the majority of its business from Cloudtail conducted rejig in its structure in India.
In February 2019, Ventures Catamaran raised its shares in Prione’s business services. The move reduced Amazon Asia’s shares in Cloudtail up to 24 percent from the beginning of 49 percent, with a catamaran peg increase to 76 percent from 51 percent earlier.

After this, Cloudtail is no longer an Amazon Group company, making it in accordance with the rules in newspapers but have not served the purpose of the norms straightened.

Now this acquisition makes the waters even muffier without clarity how the company can run Cloudtail by possibly having it under its umbrella.