CMA signals go on Just Eat / Hungryhouse

The UK government’s Competition and Markets Authority (CMA) has reached a ‘provisional conclusion’ that the merger between Just Eat and Hungryhouse doesn’t raise major competition concerns.

Just Eat, one of the UK’s restaurant food delivery companies, is buying out its major rival, Hungryhouse.

In a statement, the CMA said that a group of independent panel members investigating the merger “found that Hungryhouse presently provides limited competition to Just Eat because it is much smaller in size and offers too few unique restaurants, making it increasingly difficult for Hungryhouse to attract and retain consumers”.

The CMA added: “Furthermore, it found that the industry is evolving rapidly following the entry of platforms, such as Deliveroo, UberEATS and Amazon, which also manage or facilitate delivery services on behalf of restaurants. These companies generally present a greater competitive challenge to Just Eat than Hungryhouse, and this is likely to grow as they expand.”

Where the CMA would object is should there not be sufficient competition across the UK. While for rural and small urban locations there may be only one choice, in major urban areas such as London the market is vibrant and as such this won’t result in a national monopoly of the food delivery market.
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