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Amazon investment in Deliveroo to be investigated by competition regulator

Published: 02:49 05 Jul 2019 EDT

Deliveroo
Access to data could be the issue

Amazon’s proposed investment in takeaway delivery service Deliveroo has been put on hold after the Competition and Mergers Authority (CMA) issued an enforcement order on the deal.

Online giant Amazon was the lead investor in a US$575mln funding round undertaken by Deliveroo in May.

At the time, Deliveroo said it would use the cash to invest heavily in its technology, but the investment immediately sparked controversy with Labour’s deputy leader Tom Watson calling for an investigation.

Watson claimed it was ploy for Amazon to get access to more consumer data.

“They want Deliveroo's tech and data. They don't just want to know how you eat, what you eat, when you eat.”

The CMA issued an initial enforcement letter on 24 June that ordered the two companies to keep their businesses separate while it carried out an investigation.

Deliveroo said it has been working closely with the regulator to get approval.

"There are a number of major companies within the restaurant food delivery sector and this investment will enable Deliveroo to expand, innovate and, we believe, will enhance competition,”  a spokesperson told the BBC.

Deliveroo is battling rivals such as Uber Eats and Just Eats for a share of the burgeoning takeway market.

 

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