UK Investigates Amazon Investment in Food Delivery Firm
The U.K. competition watchdog on Friday launched an investigation into Amazon’s purchase of a big stake in food delivery service Deliveroo, a move that suggests authorities are taking a harder line on the expansion of Big Tech. While the deal had not been billed as a takeover by Amazon, the Competition and Markets Authority said it has “reasonable grounds for suspecting” that the agreement could “result in Amazon and Deliveroo ceasing to be distinct.” The investigation will put on hold any plans to merge its operations with Deliveroo, whose delivery bikes and scooters are ubiquitous in many major cities. Besides Britain, it also operates in several countries in Europe and Asia, including Germany, France, Italy and Australia. The investigation comes as the regulator is taking a more activist role in seeking to protect consumers in an evolving marketplace. “This type of deal is right in the CMA’s area of interest at the moment – large tech incumbents like Amazon investing in smaller rivals – so called “killer acquisitions,” said Nicole Kar, head of the London Competition Practice at law firm Linklaters. “You might not think there is much competition between Deliveroo and Amazon right at present given Deliveroo …