The UK’s competition regulator has ordered Amazon and the food delivery company Deliveroo to pause any integration efforts pending an investigation into potential breaches of competition rules.
The Competition and Markets Authority (CMA) on Friday issued an initial enforcement order against the companies after Amazon bought a stake in Deliveroo. The order is preliminary to a decision, with no set deadline, on whether to launch a full merger inquiry.
The online retailer was the lead investor in a $575m (£457m) financing round announced in May that valued Deliveroo at more than £4bn. Amazon bought a minority stake in the company but the order was signed by the CMA’s director of mergers.
The CMA said it had “reasonable grounds for suspecting” that Amazon and Roofoods, which trades as Deliveroo, have “ceased to be distinct” or were planning to merge, which would break competition rules.