(Alliance News) - The UK monopoly regulator said Wednesday it opened an investigation into the proposed investment in food delivery platform Deliveroo by US online retailing giant Amazon.com Inc amid concerns it would crimp competition.
In May, Amazon was named as the largest investor in a USD575 million fundraise by Deliveroo parent firm Roofoods Ltd. The stake acquired by Amazon through the unspecified investment was not disclosed.
On Wednesday, the UK Competition & Markets Authority launched its merger inquiry into the deal in order to investigate whether it would result in a "substantial lessening of competition" within the UK.
In June, the CMA had already announced an initial enforcement order which bars any integration of the firms to take place.
The CMA will decide whether to launch a phase one competition probe into the deal by December 11.
Shares in Amazon.com closed 1.8% higher at USD1,767.38 in New York on Tuesday, 0.2% lower in pre-market trading.
Just Eat PLC, a competitor to Deliveroo, was up 0.5% at 633.00 pence in London.
By Ahren Lester; ahrenlester@alliancenews.com
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