Britain's competition regulator has given itself two more months to make a final ruling on Amazon's purchase of a minority stake in online delivery group Deliveroo so it can take full account of representations from all interested parties.
Britain’s Competition and Markets Authority launched a detailed investigation in December, saying the deal could damage competition by discouraging Amazon from re-entering the online restaurant food market and further developing its presence within the online convenience grocery delivery market.
The CMA provisionally cleared the deal in April, saying it had become clear that the coronavirus crisis was damaging Deliveroo’s revenues, given the closure of a large number of the restaurants available through its platform during the lockdown. It said Deliveroo could go out of business without Amazon’s investment.
That provisional clearance was criticised in submissions by companies including Just Eat Takeaway and Dominos Pizza . The regulator was due to make its final ruling by June 11 but has now extended the deadline to August 6. “In taking this decision, the had regard to the need to take full account of representations received from the parties and third parties in response to the provisional findings and to reflect the impact of coronavirus ... in its assessment,” it said on Wednesday.“Deliveroo has repeatedly provided evidence to show that Deliveroo and Amazon offer completely different services, will remain distinct entities, and this investment will in fact clearly strengthen competition,” a spokeswoman said.
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