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CMA probes Amazon over plan to buy Deliveroo stake

28th December 2019

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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.

The deal will now be referred for an in depth, Phase 2, investigation.

Find out more: https://t.co/tvRHjmfPFm pic.twitter.com/JqJQVahx00
— Competition & Markets Authority (@CMAgovUK) December 27, 2019

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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