By Joe Hoppe
The U.K.'s Competition and Markets Authority said Tuesday that it has cleared a 16% investment by Amazon.com Inc. into U.K. food-delivery platform Deliveroo, finding that it won't substantially lessen competition.
In April, the antitrust watchdog provisionally approved Amazon's investment on the basis that Deliveroo would have exited the market without it, due to the hit from the coronavirus pandemic. That decision was questioned by rival food-delivery group Just Eat Takeaway.com NV and pizza-restaurant chain Domino's Pizza Group PLC, among other parties.
The CMA said that following a substantial investigation, including thorough analysis of internal documents from both parties, a survey of over 3,000 consumers and extensive third-party submissions, it has concluded the investment won't lessen competition in either the restaurant delivery or the online convenience grocery delivery markets.
If Amazon were to acquire greater control over the startup, this could trigger a fresh probe, the regulator said.
Deliveroo raised $575 million in a funding round in May last year led by Amazon, in which the U.S. tech giant became one of its biggest investors.
Write to Joe Hoppe at firstname.lastname@example.org
Corrections and Amplifications
This article was corrected at 1147 because it misstated that the U.K.'s Competition and Markets Authority said Wednesday that it has cleared a 16% investment by Amazon.com Inc. into U.K. food-delivery platform Deliveroo. They said it on Tuesday.
(END) Dow Jones Newswires
August 04, 2020 07:37 ET (11:37 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.