The Competition and Markets Authority (CMA) has formally approved Amazon’s 16% investment in UK delivery app Deliveroo after a 15-month investigation.
In its final decision today, the competition watchdog said the proposed investment by Amazon “has not resulted, and may not be expected to result, in a substantial lessening of competition”.
The CMA said that this was due to the relatively minor stake involved and maintained it had the ability to open a separate investigation should Amazon look to increase the percentage of its ownership of the food delivery app in future.
In a statement, Deliveroo said: “We are delighted that the CMA has concluded its 15-month investigation and that the Amazon minority investment can now go ahead.
“This is fantastic news for UK customers and restaurants, and for the British economy. British-born Deliveroo will use the investment to increase choice and value for customers, support for restaurants and will be able to offer more riders the flexible work they value as the company expands.
“Deliveroo is excited that Amazon, the most customer-obsessed and innovative company in the world, has shown such a huge vote of confidence in Deliveroo and chosen to invest in the company’s future.”
The CMA was forced to make two provisional findings into its investigation. First, provisionally waving Amazon’s investment through on the grounds that without it Deliveroo might collapse due to the coronavirus. However, in June, the CMA changed its findings given Deliveroo’s economic recovery.
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