The competition watchdog has cleared Amazon’s plan to take a 16% stake in food delivery company Deliveroo after finding it would not hurt competition in the delivery and grocery markets.
The Competition and Markets Authority, gave it the thumbs up after opening a probe into the online giant’s plans eight months ago.
Stuart McIntosh, chair of the CMA’s inquiry, said the decision takes into account that Amazon has only taken a 16% stake in the British company but if it increased the stake the regulator might open a new investigation.
In a statement, Deliveroo said: “This is fantastic news for UK customers and restaurants, and for the British economy.
“British born Deliveroo will use the investment to increase choice and value for customers, support for restaurants and will be able to offer more riders the flexible work they value as the company expands.
“Deliveroo is excited that Amazon, the most customer-obsessed and innovative company in the world, has shown such a huge vote of confidence in Deliveroo and chosen to invest in the company’s future.”