Amazon's Deliveroo Investment Could be Blocked by the UK Competition Police

By Gary Cutlack on at

The Competition and Markets Authority has sent a big long list of difficult questions to Amazon for it to get someone important to answer, as it prepares to perhaps launch an official investigation into the shopping king's investment in food delivery newcomer Deliveroo.

The CMA is concerned that Amazon could use its limitless financial and online clout to freeze other food delivery firms out of the market, leading to higher prices when the rest have all gone bust and only Amazon and its holding in Deliveroo stand triumphant. The CMA seems to think Amazon should be launching its own standalone food delivery option to compete with Deliveroo and the other foil-tray-bringers, rather than simply buying its way to the top in one swoop instead.

Andrea Gomes da Silva from the CMS explained: "If the deal were to proceed in its current form, there's a real risk that it could leave customers, restaurants and grocers facing higher prices and lower quality services as these markets develop. This is because the significant competition which could otherwise exist between Amazon and Deliveroo would be reduced."

Hence Amazon and Deliveroo have been given five days to present "legally-binding proposals" that can demonstrate a willingness to keep the firms notionally separate, and, somehow, sort of competing with each other. [CMA via BBC]