Dec 11, 2019
Amazon told to answer Deliveroo deal concerns in five days
The competition watchdog has said it may be forced to launch an investigation into Amazon's plans to invest in food delivery firm Deliveroo. It gave the two firms five days to prove that the deal would not hurt competition for food delivery. The CMA said that the investment may prevent Amazon from launching its own food delivery operation, a move which could reduce prices for customers in the future. "There are relatively few players in these markets, so we're concerned that Amazon having this kind of influence over Deliveroo could dampen the emerging competition between the two businesses." It is not the first time Amazon has tried to enter the food delivery market in the UK. The online retailer briefly ran its own delivery venture, Amazon Restaurants UK, which it started in 2016 but closed just two years later.
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