India’s competition regulator, the Competition Commission of India (CCI), announced on Friday its approval of the $3.4 billion agreement between the country’s two leading retail businesses, Future Group and Reliance Retail, creating a further challenge for the American e-commerce company Amazon, which had previously voiced concerns regarding the transaction.

The CCI, India’s antitrust authority, stated in a concise announcement that it has authorized the planned takeover of Future Group’s retail, wholesale, logistics, and warehousing operations by Reliance Retail, the largest retail chain in India – a company overseen by Mukesh Ambani, the wealthiest individual in Asia. Future Group is the nation’s second-largest retail chain.

Reliance Retail and Future Group initially revealed their proposed $3.4 billion agreement in late August. Amazon, which holds a stake in one of Future Group’s parent companies, has contested the deal, asserting that Future Group engaged in insider trading and breached contractual obligations. Amazon contends that its agreement with Future Coupons, a part of Future Group, prevented the Indian conglomerate from divesting its assets to a competitor such as Reliance Retail.

In the latter part of last month, a Singaporean arbitration panel issued a directive to temporarily suspend the agreement between the two Indian retail giants, though the enforceability of this order within India remains uncertain. Immediately following the court’s decision, Future Group and Reliance Retail affirmed their commitment to finalizing the deal “promptly.”

The announcement made on Friday is significant. Amazon, having invested over $6.5 billion in its Indian operations, had appealed to both the CCI and SEBI, India’s securities and commodity market regulator, to consider the order from the Singapore International Arbitration Centre and prevent the deal from proceeding.

Future Group is currently involved in legal proceedings with Amazon in a Delhi court, where counsel for the Indian firm has employed strong rhetoric in its accusations against the American company. The lawyer has, on multiple occasions, compared Amazon’s attempts to obstruct the Future Group’s deal to the East India Company, the British trading organization whose presence in India initiated nearly two centuries of colonial governance.

Amazon did not respond to a request for a statement.

Future Retail maintains that its contract with Amazon is not applicable to the transaction with Reliance Retail, and argues that obstructing the deal would result in substantial job losses, potentially affecting tens of thousands of individuals.

The agreement between the two largest retail chains in India also presented the CCI with an opportunity to examine the complete supply chain – encompassing wholesale, logistics, warehousing, and direct retail – within the retail sector. The approval granted today signifies that the antitrust body has determined the deal will not negatively affect competition within the relevant market.