Competition guard dog freezes Amazon’s Deliveroo financial investment

The UK competitors guard dog regulator struck time out on Amazon’s financial investment in meal-delivery service Deliveroo on Friday. The financing was stopped briefly with a preliminary enforcement order, the Guardian reports. 

The Competition and Markets Authority raised issues that the business “have ceased to be distinct.” In other words, it’s fretted that the 2 might combine, which would decrease customer option and break competitors guidelines.

In May, Amazon was initially reported to be leading a $575 million round of financing looked for by Deliveroo, which would provide the online food shipment business a much better chance at taking on Uber Eats and DoorDash. 

“We believe this minority investment will enable Deliveroo to expand its services, benefiting consumers through increased choice and creating new jobs as more restaurants gain access to the service,” an Amazon representative stated in an emailed declaration.

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In a separate statement, Deliveroo noted that it and Amazon were working “closely with regulators to obtain regulatory approvals.”

“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 wrote.

Deliveroo operates all over the UK, as well as in Australia, Germany, the US, France, Singapore, Hong Kong, Belgium, Ireland, Italy, the Netherlands, Spain, Taiwan, Kuwait and the United Arab Emirates.

Amazon shut down its own UK-based food delivery service — Amazon Restaurants UK — last December, in the face of competition from Deliveroo and Uber Eats.

It originally launched the service for its Seattle-based Prime customer in 2015, then expanded to other US cities.

First published at 4:44 a.m. PT.
Updated at 5:09 a.m. PT: Adds more detail.