Business World

Tuesday 16 July 2019

UK puts brakes on Deliveroo tie-up

Amazon and Deliveroo are under investigation by the UK competition
Amazon and Deliveroo are under investigation by the UK competition

Kate Holton and James Davey

The UK's competition regulator has stepped in to pause Amazon's investment in online food delivery group Deliveroo while it considers launching a full investigation.

Amazon led a $575m (€513m) fundraising for Deliveroo in May, taking what both sides said was "a minority investment", and going up against Uber Eats.

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Yesterday, the UK's Competition and Markets Authority said it had served an initial enforcement order on the two companies on June 24, signalling possible concerns. The regulator, which referred to Amazon's investment as "a minority shareholding", said it had reasonable grounds for suspecting that Amazon and Deliveroo "have ceased to be distinct", or were putting in place or considering arrangements which would result in them "ceasing to be distinct".

The order requires Amazon and Deliveroo to operate independently for now, while the regulator decides if it will launch a formal 'Phase 1' competition probe.

Reuters

Irish Independent

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