The Competition and Markets Authority (CMA) has referred the anticipated acquisition by Amazon of a minority (16%) shareholding and certain rights in Deliveroo for an in-depth merger investigation.
The CMA raised competition concerns in early December finding the UK online restaurant delivery market to be “highly concentrated”, with only three large players in the UK: Deliveroo, Just Eat and UberEats.
The CMA said the deal could mean that customers, restaurants and grocers face higher prices and lower-quality service
The parties were unable to offer remedies that would address the CMA’s concerns, which prompted the opening of a Phase II probe. The CMA has prohibited only one minority investment since 2004 when it blocked Ryanair’s attempt to buy a stake in the competitor Irish airline Aer Lingus.
The German Federal Cartel Office cleared Amazon’s investment deal unconditionally in July after a Phase I review. Deliveroo had practically no activities in Germany and has since committed to exit the German market.
https://www.gov.uk/cma-cases/amazon-deliveroo-merger-inquiry
No comments:
Post a Comment