Ecommerce retailer Amazon has secured UK Competition and Markets Authority’s (CMA) clearance for its 16% investment in food delivery start-up Deliveroo.
The approval follows an in-depth investigation by the CMA, which involved extensive analysis of internal documents from Amazon and Deliveroo and widespread submissions from interested third parties.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
It also conducted a survey of more than 3,000 consumers.
In December last year, the regulator completed the initial ‘Phase 1’ investigation and referred the transaction for an in-depth ‘Phase 2’ investigation.
During this second phase, the CMA determined if the deal could lead to a substantial lessening of competition in the coming years.
The regulator revealed that the deal will not lessen competition but will do so if Amazon plans to acquire a controlling interest in Deliveroo.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn a statement, Inquiry Group Chair Stuart McIntosh said: “Today’s final decision is the result of a thorough examination of this deal and the markets in which Amazon and Deliveroo operate.
“The CMA’s initial Phase 1 review of the transaction highlighted potential competition concerns which the independent Inquiry Group has considered in detail during the Phase 2 investigation.
“Taking account of the higher legal standard that applies at Phase 2, the Group has concluded that the transaction will not result in a substantial lessening of competition in either restaurant delivery or convenience grocery delivery.
“Our decision reflects the scale of Amazon’s investment in Deliveroo (16% of the company’s equity) and its incentives to compete in both markets.”
Last month, Amazon started a trial for its online grocery delivery service with free delivery on orders over £40 to Prime members in 300 postcodes in London and the south-east of England.
