Competition watchdog opens investigation into Amazon-Deliveroo deal
The UK’s competition regulator announced that it has opened a probe into Amazon’s investment in food delivery service Deliveroo.
The UK Competition and Markets Authority (CMA) announced on Wednesday that it has launched a formal investigation into Amazon’s investment in food delivery company Deliveroo.
The CMA said that it was concerned that Amazon’s $575 million investment in the company back in May could lead to a ‘substantial lessening of competition’ in the UK.
The watchdog will unveil its finding from its first phase of the probe on December 11.
Amazon and Deliveroo too close for comfort
The regulator has previously ordered Amazon and Deliveroo to operate independently after expressing concern that the two companies had ‘ceased to be distinct’.
Amazon is said to have made the investment in Deliveroo in a bid to dominate the food delivery market which is worth an estimated $100 billion worldwide.
‘Deliveroo is cooperating fully with the CMA. This minority investment will help to create jobs, help restaurants to grow their businesses, improve choice for consumers and enhance competition in the UK food delivery sector,’ a Deliveroo spokesman said.
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