Amazon-Deliveroo deal to face in-depth competition investigation

The Competition and Markets Authority said today that Amazon’s investment in Deliveroo will face detailed scrutiny, following the latest decision on the implications of the pair’s tie-up.

Concerns centre on the terms of the deal would represent a relevant merger situation if “enterprises carried on by Amazon.com will cease to be distinct from enterprises carried on by Roofoods Ltd [Deliveroo]” and “whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services”.

The decision came after Amazon failed to quell “initial concerns that their investment in Deliveroo could be bad for customers, restaurants and grocers”.

An investigation and report are scheduled to be completed by June 11 2020.

Amazon acquired a minority shareholding in food delivery platform Deliveroo in May. Deliveroo founder and chief executive Will Shu said at the time that it 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 earlier this month the CMA expressed concern that the deal could be bad for competition in online restaurant food delivery and for competiton in the online grocery market.