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”.

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