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July 5, 2019/18 h 31 / a day ago
Regulator of UK competition puts a damper on Amazon's Deliveroo deal
Kate Holton, James Davey
4 min read
(Reuters) – The UK's competition regulator has stepped in to pausing the Amazon deal (AMZN.O) with online food retailer Deliveroo, while considering launching a thorough investigation.
Amazon led a $ 575 million fundraiser to Deliveroo in May, realizing what the two parties called a "minority investment" and standing up against Uber Eats (UBER.N) in the global race to dominate the market for takeaway deliveries.
On Friday, the UK's Competition and Markets Authority (CMA) announced that it issued a first executive order to both companies on 24 June, signaling possible concerns about the deal.
The regulator, who described Amazon's investment as "minority shareholding," said it had reasonable grounds to suspect that Amazon and Deliveroo "had ceased to be distinct," or were in the process of put in place or make arrangements that would make them "stop being separate". ".
The command requires that Amazon and Deliveroo operate independently for the moment, which means that they can not continue with the reconciliation. It gives the regulator time to decide whether to launch a formal "Phase 1" competition inquiry.
Deliveroo's investment is Amazon's latest attempt to enter the $ 100bn take-home delivery market after the closure of its own service, Amazon Restaurants, in the UK and last month in the United States.
The Amazon logo is visible on the company's logistics center in Boves, France, January 19, 2019. REUTERS / Pascal Rossignol
Amazon led a $ 575 million fundraiser to Deliveroo in May, realizing what the two parties called a "minority investment" and standing up against Uber Eats (UBER.N) in the global race to dominate the market for takeaway deliveries. The UK Competition and Markets Authority (CMA) announced Friday that it has issued a first order […]
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