Amazon's stake in Deliveroo is cleared by competition watchdog

Telegraph 04 Aug 2020 11:02

Amazon has finally been given approval to buy a stake in takeaway service Deliveroo - 15 months after the deal was first announced.

The US tech titan will buy 16pc of Deliveroo, pumping in $575m (£400m) of vital cash to help it stay afloat. Monopoly regulators cleared the deal after a lengthy investigation found it would not substantially decrease competition in the market.

Officials at the Competition and Markets Authority (CMA) announced they were looking into the funding round last summer. They launched an investigation in December amid concerns it could reduce the number of players in the online food delivery and grocery market, ultimately driving up prices for consumers.

However, in April the CMA said it would provisionally clear the agreement because Deliveroo had warned it desperately needed cash to stave off collapse during the coronavirus pandemic. 

The CMA then issued a further finding in June, saying that the two sides would not be required to offer up any remedies - pledges aimed at supporting competition, such as an agreement to sell parts of a business - as Amazon was only buying a minority stake.

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DeliverooCMAAmazonCompetition and Markets AuthorityDeliveroo
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