Competition watchdog orders Amazon, Deliveroo to answer merger concerns
CMA has given both firms until 18 December to provide an answer on their deals question.
The government’s competition watchdog has ordered Amazon and Deliveroo to answer its concerns over the proposed merger between the two companies, warning that the merger could significantly reduce competition in the UK online takeaway and grocery market.
The Competition and Markets Authority (CMA) has given the two companies until 18 December to propose remedies before it launches a full-scale investigation.
“Amazon’s substantial expertise in areas such as the operation of online marketplaces, logistics networks and subscription services could allow it to influence other Deliveroo shareholders and board members,” the regulator explained.
Earlier, CMA ordered Amazon to put on hold the payments generated from its US$575m (£470m) funding round for Deliveroo last May. The funding round was done in exchange for a minority stake at the delivery platform and the proposed merger.
