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Amazon Investment in Deliveroo Paused by U.K. Regulator

A British competition regulator has escalated its scrutiny of American tech giants by ordering Amazon to suspend its investment in Deliveroo, a top restaurant delivery service in the U.K. The country’s Competition and Markets Authority—known as the CMA—is concerned about a $575 million round of funding Deliveroo announced in May which was led by Amazon. The investment gave Amazon a minority stake in Deliveroo.

The CMA said it had reasons to believe the two companies were planning to merge their operations, according to Reuters. The order forces Amazon and Deliveroo to keep distance between themselves while the CMA decides whether to proceed with a formal investigation of the deal. A likely factor in the CMA’s concerns is that Amazon recently pulled the plug on its own food delivery service, Amazon Restaurants, including in the U.K.

The announcement is the second move this month by the CMA to examine the business practices of large tech companies. Earlier, it launched a probe of digital advertising platforms, including Facebook and Google, and their dominance of the market. In May, the CMA said it reached an agreement with Apple to force the company to more clearly disclose details about iPhone battery health and performance to its customers.   

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