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UK: Amazon/Deliveroo deal probed

By  |  October 24, 2019

The CMA is investigating the acquisition by Amazon of certain rights and a minority shareholding in Roofoods  (trading as Deliveroo).

The Competition and Markets Authority (CMA) said it had begun the first phase of an investigation, after the US technology firm revealed that it was the lead investor in a $575m funding round in Deliveroo.

When it was announced in May, the deal sent shockwaves through the burgeoning and fiercely competitive food delivery sector, as investors anticipated Amazon using its financial muscle to take business from rivals.

Amazon’s first foray into takeaway delivery in Britain, Amazon Restaurants UK, failed in December 2018, barely two years after it opened. However, it continues to run its Amazon Fresh service, which delivers groceries to customers, and the company has spent millions worldwide on logistics technology that could give it an edge over competitors.

Full Content: Gov UK

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