CMA clears Amazon’s acquisition of minority stake in Deliveroo
The Competition and Markets Authority (CMA) has cleared the acquisition by Amazon of a minority (16%) shareholding in Roofoods Ltd (Deliveroo).
The unconditional clearance follows a phase 2 investigation. The CMA concludes that the acquisition would not be expected to result in a substantial lessening of competition in the supply of online restaurant platforms or online convenience grocery in the UK.
The CMA found that absent the transaction Amazon would be likely to re-enter the online restaurant platform market in the UK, but it would not in any event substantially lessen competition.
The CMA also concluded that Amazon’s investment in Deliveroo is unlikely to discourage Deliveroo from competing on online convenience grocery services, nor would it remove the strategic benefit to Amazon of developing its own competing service.
The decision focuses on Amazon’s 16% interest in Deliveroo amounting to material influence. If Amazon were to acquire a more significant interest amounting to a stepping up in the level of control, this would trigger a new relevant merger situation and would invite further scrutiny by the CMA.
https://www.gov.uk/government/news/cma-clears-amazons-16-investment-in-deliveroo
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