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Competition authority investigates Amazon over Deliveroo investment

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Competition authority investigates Amazon over Deliveroo investment

The Competition and Markets Authority (CMA) has told food delivery firm Deliveroo and tech giant Amazon to cease any efforts that may integrate the two companies amid an investigation into any potential breach of competition rules.

The Initial Enforcement Order against the two firms was issued by the regulatory body after Amazon bought a minority stake in the delivery company. The CMA will now consider whether a full inquiry into the activities of the two firms is required.

In its assessment, the CMA claimed there were “reasonable grounds for suspecting” that the two firms had “ceased to be distinct”. The order now bans Deliveroo from taking any further steps that may further integrate the two companies.

It follows the closure of Amazon’s own food delivery wing, Amazon Restaurants UK. The concept was wound up in December two years on from its launch.

A spokesman for Amazon said: “We believe this minority investment will enable Deliveroo to expand its services, benefiting consumers through increased choice and creating new jobs as more restaurants gain access to the service.”

A spokesperson for Deliveroo said:  “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.”

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