CMA initiates action against Amazon / Deliveroo tie up

The UK Competition and Markets Authority (CMA) has served an initial enforcement order on Amazon over its investment in hot food delivery company Deliveroo.

In May, Amazon led a $575 million funding round for Deliveroo. This would put the company on a par with UberEats in global competition for hot food delivery.

The CMA’s initial enforcement order prevents business with carrying out planned tie ups while the CMA considers whether to initiate an investigation.

The measure is used should the CMA suspect that two enterprises “have ceased to be distinct”, or that arrangements are in progress, or in contemplation, which could result in the enterprises “ceasing to be distinct”.

Deliveroo has responded by saying it and Amazon are working with authorities to get approval for the investment.

“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,” a spokesman said.

“This investment will help create jobs, help restaurants to grow their businesses and will improve choice for consumers.”

Amazon meanwhile has not responded to requests for comment.

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