Competition regulator puts Amazon’s Deliveroo stake on hold

Mark Johnson's picture
by Mark Johnson

The UK’s Competition and Markets Authority on Friday issued an initial enforcement order halting integrations efforts by the companies, while it investigates a recent £475m financing round.

Amazon was the lead investor in the cash raising, which took place in May and the CMA now wants to investigate the deal for any possible breaches of UK competition rules.

The CMA said it had “reasonable grounds for suspecting” that Amazon and Roofoods, which trades as Deliveroo, have “ceased to be distinct” or were planning to merge, which would break UK competition rules.

While the CMA carries out its investigation, both companies must continue to carry out their service contracts separately.

The order states that “the Deliveroo business is carried on separately from the Amazon business and the Deliveroo business’s separate sales or brand identity is maintained”.

The deal has shaken other food delivery providers in the UK. FTSE100-listed Just Eat has seen its shares fall more than 10% since the Amazon/Deliveroo deal was announced.

Buy your tickets for the Prolific London Awards

The inaugural event takes place on July 16th