The U.K.’s competition regulator gave its approval for Amazon to buy a 16% stake in food delivery startup Deliveroo. The approval comes after the U.K. Competition and Markets Authority (CMA) launched an investigation to look into possible anti-competitive implications of Amazon's stake. The investigation concluded, with the CMA finding that it wouldn't lessen competition.
- In May 2019, Deliveroo announced it had raised $575m in an Amazon-led funding round. Shortly after, the CMA halted the deal and launched an anti-competitive investigation.
- The probe looked into whether the deal would block Amazon from re-entering the online food delivery market; it also explored if it would substantially lower competition in restaurant or grocery deliveries in the U.K.
- On Tuesday, the CMA confirmed that Amazon is allowed to move forward with its minority investment in the startup, upholding its two previous provisional findings.
- While the CMA found that the investment would not "substantially lessen competition" in both grocery and restaurant delivery, it could pursue a further investigation if Amazon acquired a greater stake in Deliveroo, regulators said.
- Amazon launched its on-demand food delivery service in London in 2016, but ended it in 2018.