British regulators have launched an inquiry into whether a large investment by Amazon into the online takeaway delivery company Deliveroo breached competition rules, reported Reuters.
The Competition and Markets Authority (CMA) announced it had begun the first phase of an investigation after the US technology firm revealed that it was the lead investor in a US$575m funding round in Deliveroo.
Deliveroo is one of Europe’s fastest growing tech companies and uses 60,000 riders dressed in black and teal jackets to deliver meals from more than 80,000 restaurants and takeaway outlets in 13 countries.
Amazon bet that its investment in the company would give it an inroad to pit itself against Uber Eats.
The CMA previously ordered Amazon and Deliveroo to operate independently on concerns that the companies had “ceased to be distinct” or were putting in place arrangements which would result in the same.
Full Content: Reuters
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