Daily reviews

05.07.2019

Amazon under investigation

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Amazon and Deliveroo are under investigation by the competition watchdog following the US company buying a significant stake in the food delivery platform.

Online giant was the lead investor in a US$575mln round undertaken by Deliveroo in May

Stocks impacted: Amazon (AMZN)

Britain's watchdog served Amazon and Deliveroo an initial enforcement order in a bid to pause the e-commerce giant's stake purchase in the online food delivery company. An initial enforcement order is put in place to prevent the businesses from integrating after a possible merger, while the watchdog decides if it needs to launch an investigation. As a reminder, the CMA issued an initial enforcement letter on 24 June that ordered the two companies to keep their businesses separate while it carried out an investigation. The watchdog confirmed it would be looking into any potential breaches of competition rules. Earlier this week, Amazon, shuttered its food delivery service Amazon Restaurants.

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