The Competition and Markets Authority in the U.K. has asked e-commerce giant Amazon to halt its investment into food delivery start-up Deliveroo, as it investigates into the deal.
The U.K.’s competition watchdog said it has “reasonable grounds” to suspect that the investment could mean that Amazon and Deliveroo would “cease to be distinct”.
In May, Amazon led a $575-million funding round in Deliveroo. According to Amazon,the stake is a minority one in the startup. While Deliveroo is one of the most popular food delivery firms in Europe, Amazon had shut down its own restaurant delivery service in the U.K. last December.