CMA clears Amazon-Deliveroo tie-up despite financial turnaround

Deliveroo bike

The competitions watchdog has once again provisionally cleared ecommerce giant Amazon’s investment in food delivery app Deliveroo, despite the latter’s financial turnaround.

The Competition and Markets Authority (CMA) originally provisionally cleared Amazon’s 16% investment in Deliveroo in April, basing its findings on the app’s testimony that, should the investment be blocked, it would have collapsed owing to the effects of the coronavirus on restaurants.

At the time the CMA said: “The imminent exit of Deliveroo would have been worse for competition than allowing the Amazon investment to proceed.”

However, Deliveroo’s financial situation has since shown “considerable improvement” since the original finding which has led the CMA to conclude that it “would no longer be likely to exit the market in the absence of the transaction”.

Subscription content

Please sign in now if you have a subscription or are already registered with us.

Retail Week

Register for free to continue reading

Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • Two free article views per calendar month on Retail-Week.com
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.