Amazon’s Deliveroo deal under further investigation
Amazon and Deliveroo are facing further scrutiny from The Competitions and Markets Authority (CMA) regarding it’s estimated £450m merger over anti-competition concerns. The CMA is the UK’s watchdog for competition and have the power to stop deals that they believe to be damaging to the consumer. On Friday, the CMA claimed that Amazon and Deliveroo had failed to speak to concerns that their deal is anti-competitive.
The primary concern with the merger is that the CMA believes it discourages Amazon from re-launching its own food delivery service in the UK. If Amazon was to re-launch such a service, it would create competition which is good for consumers as it can potentially lead to lower prices.
Amazon used to have a food delivery service in London but closed the service down in 2018 after just over one year.
Deliveroo and Amazon were given five working days to address these concerns in December, but the CMA said they failed to do so.
In the meantime, the deal will remain paused while the CM carry out a second phase of their investigation.