The Competition and Markets Authority (CMA) has extended the deadline for its ruling on whether Amazon Inc’s (NASDAQ:AMZN) investment in Deliveroo for a minority stake in the takeaway firm raises any competition issues.
The regulator originally cleared the deal in April, when it said the coronavirus was damaging Deliveroo’s revenues and the otherwise successful firm would go bust without Amazon’s cash injection.
However, the regulator has said it will now make a final ruling on the investment on August 6, as opposed to the previous deadline of June 11.
“In taking this decision, the Inquiry Group had regard to the need to take full account of representations received from the Parties and third parties in response to the provisional findings and to reflect the impact of coronavirus (COVID-19) in its assessment. The Inquiry Group considers that completion of its investigation and the publication of its final report will not be possible within the original reference period”, the CMA said in a statement on Wednesday.
An investigation by the CMA was launched in December after the ecommerce giant led a £452mln funding round into Deliveroo last May.
The CMA originally said that the deal, which would pitch Deliveroo and Amazon against other players in the market such as Uber Technologies Inc (NYSE:UBER) and Just Eat Takeaway.com NV (LON:JET), could damage competition by discouraging Amazon from developing its presence in online grocery and from re-entering the online restaurant food market.
Shares in Amazon were up 1.9% at US$2,649 in mid-morning trading in New York on Wednesday.