Thursday, 11 June 2020

CMA extends deadline for Amazon-Deliveroo phase 2 merger investigation


CMA extends deadline for Amazon-Deliveroo phase 2 merger investigation



The Competition and Markets Authority (CMA) has extended the period for its second phase review of the acquisition by Amazon of a minority stake and certain rights in Roofoods Ltd (trading as Deliveroo).

The reference was made on 27 December 2019.

On 17 April 2020 the CMA announced its provisional findings that the merger would not be expected to result in a substantial lessening of competition in either the markets for online groceries or online restaurant delivery platforms.  It found that as a result of the outbreak of COVID-19, Deliveroo is likely to exit the market absent the additional funding made available to it through the transaction.

The CMA was required to deliver its final report today (11 June 2020). However, it has decided to extend the reference period by eight weeks until 6 August 2020.  The CMA states that it needs to take full account of representations received in relations to its provisional findings as well as the impact of COVID-19 in its assessment.

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