Competition watchdog freezes Amazon's Deliveroo investment – CNET

Deliveroo's investment from Amazon has been paused.

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The UK competition watchdog regulator hit pause on Amazon's investment in Deliveroo on Friday, after raising concerns that the companies "have ceased to be distinct" through an initial enforcement order. Basically, it's worried that the companies could merge, which would reduce consumer choice and break competition rules, the Guardian noted.

In May, Amazon was first reported to be considering injecting $575 million into the UK online food delivery company, giving it a better shot at competing with 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 spokesperson said in an emailed statement.

Competition watchdog freezes Amazon's Deliveroo investment     - CNET

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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.

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