Probe into Amazon’s Deliveroo investment

AMAZON’S bid to buy a stake in Deliveroo has been dealt another blow after competition officials launched a full-blown investigation into the deal.

In May, the US online giant led a £450m investment round into the British food delivery firm, in exchange for taking a minority stake in the business.

But the Competition and Markets Authority (CMA) has put a freeze on the tie-up over fears it could lead to higher prices for customers.

And after an early-stage probe, the regulator said it was now ramping up for a more detailed inquiry – a move that could see the deal blocked altogether.

It is understood the decision was taken after Amazon and Deliveroo failed to respond to the CMA’s concerns before a deadline last week.

In a brief statement, the CMA said: ‘The CMA has referred the anticipated acquisition by Amazon of a minority shareholding and certain rights in Deliveroo for an in-depth investigation.’

The CMA had warned that Amazon’s investment raised ‘serious concerns’ because it would reduce the amount of competition in the UK’s rapidly growing food delivery market.

At the moment the main players are Just Eat, Uber Eats and Deliveroo.

A Deliveroo spokesman yesterday said it would co-operate ‘closely’ with the CMA.

The CMA has until June 11 to make a recommendation to the Government about whether to block the deal or not.