Competition watchdog orders halt to Amazon's deal with Deliveroo
The order was issued after the online retailer bought a stake in the food delivery company.
The UK’s competition regulator has ordered Amazon and food delivery company Deliveroo to pause any integration efforts pending an investigation into potential breaches of competition rules.
The order issued by the Competition and Markets Authority (CMA) is preliminary to a decision, with no set deadline, on whether to launch a full merger inquiry.
The CMA said it had “reasonable grounds for suspecting” Amazon and Deliveroo had “ceased to be distinct”, or that “arrangements are in progress or in contemplation” which would lead to it being the case.
Amazon was the lead investor in a US$575m (£457m) financing round announced in May that valued Deliveroo at more than £4bn.
“Deliveroo and Amazon have been working closely with regulators to obtain regulatory approvals. There are a number of major companies within the restaurant food delivery sector and this investment will enable Deliveroo to expand, innovate and, we believe, will enhance competition. This investment will help create jobs, help restaurants to grow their businesses and will improve choice for consumers.” a spokesperson for Deliveroo said.
