Last year, the Competitions and Markets Authority (CMA) launched an investigation into Amazon’s 16% purchase of food-delivery firm Deliveroo. The CMA believed there was a ‘realistic prospect’ the transaction could harm competition within the online restaurant food market.
The CMA’s initial decision was to block the deal due to fears the deal would discourage Amazon from independently entering the market; with Deliveroo arguing they urgently needed the funding due to the COVID-19 pandemic.
As time passed, Deliveroo’s financial position recovered faster than expected. The CMA found that “the level of investment will not substantially lessen competition in either market. However, the CMA did state that if Amazon were to buy a further slice of the Deliveroo business it could trigger further investigations.