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Amazon.Com Inc. (AMZN)

Closing Price Change:
-$14.23
Closing Price:
$1,949.72
Market Cap:
$970,960m

Amazon investment in Deliveroo raises 'serious' concerns, CMA says

11 Dec 19

LONDON (ShareCast) - (Sharecast News) - Amazon's investment in online food delivery service Deliveroo could be referred for an in-depth investigation, the UK Competition and Markets Authority said on Wednesday, as it highlighted "serious" competition concerns.
Amazon announced in May that it was the lead investor in a $575m funding round in Deliveroo. But the competition watchdog warned there was a "real risk" that customers, restaurants and grocers could be left paying higher prices as a result, with lower quality services.

"This is because the significant competition which could otherwise exist between Amazon and Deliveroo would be reduced," said CMA executive director Andrea Gomes da Silva said.

"Millions of people in the UK use online food platforms for takeaways, and more than ever are making use of similar services for the same-day delivery of groceries.

"There are relatively few players in these markets, so we're concerned that Amazon having this kind of influence over Deliveroo could dampen the emerging competition between the two businesses."

The companies now have five working days to offer remedies to address the CMA's concerns or face an in-depth investigation.

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Market Data

Currency US Dollars
52 Week High $2,170.22
52 Week Low $1,676.61
Shares Issued 498.00m
Market Cap $970,960m

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