Economics
In the News
CMA probes Amazon over plan to buy Deliveroo stake
28th December 2019
The Competition and Markets Authority (CMA) is still concerned about Amazon's proposed purchase of a stake in Deliveroo.
UK's competition watchdog investigates Amazon's bid to buy stake in food delivery firm Deliveroo https://t.co/jsnlbmVcMe
— BBC News (UK) (@BBCNews) December 27, 2019
They've raised this before but Amazon have failed to make any representation to suggest that the deal will not have adverse consequences for consumers or restaurants and grocers.
The nub of the concern appears to be that Amazon will seek to invest in Deliveroo rather than develop their own rival, and thus choice will be lower and, similarly, there'll be less of an incentive fro incumbents to keep costs down.
Amazon has failed to address our initial concerns that their investment in Deliveroo could be bad for customers, restaurants and grocers.
— Competition & Markets Authority (@CMAgovUK) December 27, 2019
The deal will now be referred for an in depth, Phase 2, investigation.
Find out more: https://t.co/tvRHjmfPFm pic.twitter.com/JqJQVahx00
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