The UK's Competition and Markets Authority has placed limitations on Deliveroo's links with Amazon after raising concerns about a reduction of customer choice in the food-delivery market. Deliveroo can operate in the UK as a separate company and must not be absorbed by the e-commerce brand, it said. The watchdog's decision followed the online retail giant's participation in a $575m funding round earlier this year, which made it Deliveroo's biggest backer. In its statement, Amazon said that while it was "disappointed" at the decision, "we respect the Commission's decision."
The UK's Competition and Markets Authority has placed limitations on Deliveroo's links with Amazon after raising concerns about a reduction of customer choice in the food-delivery market. Deliveroo can operate in the UK as a separate company and must not be absorbed by the e-commerce brand, it said. The watchdog's decision followed the online retail giant's participation in a $575m funding round earlier this year, which made it Deliveroo's biggest backer. Amazon closed its UK-based food delivery business last year due to competition from Deliveroo.