The Competition and Markets Authority (CMA) has launched an investigation into whether Amazon’s investment to acquire a minority stake in Deliveroo could result in a “substantial lessening of competition”.
Earlier this year in May, Amazon led a $575m (£450m) investment round in the food delivery app raising a $1.53bn (£1.2bn) total.
Amazon joined other investors including T. Rowe Price, Fidelity Management and Research Company, and Greenoaks, in raising a $1.53bn (£1.2bn) total.
Deliveroo said it has planned to use the funds to create more high-skilled jobs and introduce new app tools to help restaurant partners and riders following the funding round.
The CMA had issued an initial enforcement order whether it decides whether to launch a full investigation.
A spokesperson for Deliveroo said “Deliveroo is co-operating fully with the CMA. This minority investment will help to create jobs, help restaurants to grow their businesses, improve choice for consumers and enhance competition in the UK food delivery sector.”
The CMA said it expects to make a decision on the first phase of the investigation by 11 December.