British watchdog gives preliminary deal with Amazon-Deliveroo

British watchdog gives preliminary deal with Amazon-Deliveroo


The British competition watchdog has tentatively approved Amazon’s plan to buy a stake in the food delivery company Deliveroo, saying it would not negatively impact customers by decreasing choice or raising prices.

The competition and markets authority has approved a deal under which Amazon will take a 16% stake in the delivery platform. The authority warned that it would reassess whether Amazon, which has a dominant presence in online retail, wished to further increase its stake.

“We carefully considered how this investment could affect competition between the two companies in the future,” said Stuart McIntosh of the CMA, who oversaw the deal investigation. “If we look closely at the size of the shareholding and how it will impact Amazon’s incentives, as well as the competition that companies will continue to face in food and convenience store deliveries, we have determined that the investment should not be a negative have on customers. “

The investigation was important because it suggested that the authorities pay more attention to the expansion of large technology companies. But it was confused.

Although the deal was not billed as an acquisition by Amazon, the authority wanted to consider whether the agreement “could lead to Amazon and Deliveroo no longer being distinctive.”

Deliveroo described the approval as a victory for British companies.

“The minority investment allows British-born, British-bred Deliveroo to compete with well-capitalized overseas rivals and continue to innovate for customers, riders and restaurants.” “As the UK economy recovers from the damage caused by COVID-19, stable regulation is crucial. We therefore urge the CMA to complete their assessment as soon as possible. ”

Deliveroo delivery bikes and scooters are ubiquitous in many major cities, especially in Europe. In addition to Great Britain, it operates in several countries in the region and in Asia, including Germany, France, Italy and Australia.

The watchdog will make a final decision by August 6.

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