Amazon’s cash injection into food delivery service Deliveroo has raised the hackles of the Competition and Markets Authority (CMA), which has warned of “serious competition concerns”.
The authority has said in its initial slide rule over Amazon buying a minority stake in Deliveroo that it could harm competition in two ways, which means it will likely launch an in-depth investigation into the deal.
Amazon snapped up a stake in food delivery platform in the business’s latest funding round in May, which Deliveroo founder and chief executive Will Shu said would “help Deliveroo to grow and to offer customers even more choice, tailored to their personal tastes, offer restaurants greater opportunities to grow and expand their businesses”.
However, the CMA has cast aspersions on the investment. The authority said the deal could “damage competition in online restaurant food delivery by discouraging Amazon from re-entering the market in the UK”.
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