UK competition regulator puts brake on Amazon’s Deliveroo deal

Business News July 5, 2019 / 6:31 PM / a day ago UK competition regulator puts brake on Amazon's Deliveroo deal Kate Holton, James Davey 4 Min Read (Reuters) - Britain’s competition regulator has stepped in to pause Amazon’s (AMZN.O) deal with online food delivery group Deliveroo while it considers launching a full investigation. Amazon led a $575 million fundraising in Deliveroo in May, making what the two parties called “a minority investment” and going up against Uber Eats (UBER.N) in the global race to dominate the market for takeaway meal deliveries. On Friday Britain’s Competition and Markets Authority (CMA) said it served an initial enforcement order (IEO) on the two companies on June 24, signaling possible concerns about the transaction. The regulator, which referred to Amazon’s investment as “a minority shareholding” said it had reasonable grounds for suspecting that Amazon and Deliveroo “have ceased to be distinct” or were putting in place or considering arrangements which would result in them “ceasing to be distinct”. The order requires Amazon and Deliveroo to operate independently for now, meaning they cannot press ahead with the tie-up. It gives the regulator time to decide if it will launch a formal “Phase 1” competition probe. The Deliveroo investment is Amazon’s latest attempt to enter the takeaway delivery market, worth around $100 billion globally, after it shut down its own service, Amazon Restaurants, first in the UK and then last month in the United States. The logo of Amazon is seen at the company logistics centre in Boves, France, January 19, 2019. REUTERS/Pascal Rossignol

Amazon led a $575 million fundraising in Deliveroo in May, making what the two parties called “a minority investment” and going up against Uber Eats (UBER.N) in the global race to dominate the market for takeaway meal deliveries. On Friday Britain’s Competition and Markets Authority (CMA) said it served an initial enforcement order (IEO) on […]

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