The British competition authority announced on Tuesday that it had authorized Amazon to acquire a stake in the delivery platform Deliveroo. The organization believes that this operation will not penalize the consumer.
The CMA (Competition and Markets Authority) launched an in-depth investigation into this 16% stake in Amazon in December. The authority had provisionally validated the operation in April under pressure from the coronavirus, in order to allow Deliveroo to survive the crisis.
Following an in-depth investigation, we've today cleared Amazon's 16% investment in Deliveroo after finding that it will not substantially lessen competition.
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Deliveroo in full development
The CMA then resumed its investigation. The regulator feared that the project would impoverish competition, dissuading Amazon from launching its own service. But he concluded that an investment of 16% did not involve such risks and would not have negative consequences for consumers. The authority nevertheless warns that another investigation will take place if Amazon increases its participation.
In 2019, Deliveroo announced a total fundraising of $ 575 million from Amazon and investment funds. This money must make it possible to finance its development, in the light of ever-increasing demand. For its part, Amazon launched into the delivery of meals in 2016 before closing its service.
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- United Kingdom
- Economy
- Capital
- Investment
- Deliveroo
- Amazon