Amazon’s move to invest 440 million pounds in Deliveroo is facing scrutiny from the UK’s Competition and Markets Authority (CMA) over its potential impact on competition in the UK.
The deal, announced in May, has raised concerns among regulators about its implications for customers, restaurants, and grocers. The CMA has highlighted that the companies have missed the December 18th deadline to address these concerns.
The ongoing investigation by the CMA, which has been ongoing since May, and the companies’ failure to address the CMA’s worries, could jeopardize the deal. This could potentially stall Amazon’s entry into the British food delivery market.
The CMA is worried that Amazon’s stake in Deliveroo could hinder competition and prevent the emergence of a British rival to Amazon’s food delivery service. This could lead to reduced competition and higher prices for consumers. The CMA argues that there is a significant risk associated with this acquisition.
Amazon has defended its position by stating that the investment would allow Deliveroo to enhance its competitiveness and foster innovation. Deliveroo has also voiced confidence that they can convince the CMA that the deal will not pose a threat to competition in the British food delivery sector.
