United Kingdom watchdog escalates probe of Amazon's Deliveroo deal

United Kingdom watchdog escalates probe of Amazon's Deliveroo deal

Market authorities said the companies did not provide the requested information by the deadline of December 18, and now they are waiting for a thorough investigation.

The competition guard has launched an in-depth investigation into Amazon's offer to purchase a stake in Deliveroo.

The investigation established in June because of the British Competition and Markets Authority (CMA) is created to see whether Amazon's massive financial investment in Deliveroo probably will distort competitors when you look at the meals and food distribution areas.

The British competition authority announced Friday that it'll more explore the effects of Amazon's takeover of element of Deliveroo's money.

Due to the size of the company, the CMA initiated an initial investigation and then a phase 1 study.

The CMA previously raised concerns that the deal could discourage Amazon from re-entering the restaurant food delivery sector, having previously launched and closed its Amazon Restaurants business a year ago.

CMA fears that Amazon and Deliveroo could "cease to be distinct" or merge in the future, which could, theoretically, lead to customers facing higher prices or lower-quality services.

"We are confident that we will persuade the CMA of the facts that this minority investment will add to competition, helping restaurants to grow their businesses, creating more work for riders, and increasing choice for customers", he said.

The Competition and Markets Authority first raised concerns about the deal earlier this month, saying it would limit competition in a United Kingdom restaurant delivery market already dominated by just three companies including Deliveroo.

UK-based Deliveroo in May announced that Amazon was the largest investor in a US$575-million funding round.

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