The UK’s Competition Control Authority (CMA) has issued decisions to Amazon, which plans to merge with Deliveroo, a leading local delivery company, to limit its relationship with the British company.
The regulatory body CMA says that the two companies could become one company in the future, which may reduce the choices of customers in the market, so the CMA must intervene to reduce the relationship between them.
Amazon had to close its restaurant delivery service in the UK last year because of its failure to face Deliveroo, but this year Amazon decided to invest $ 575 million in Deliveroo to become the largest company to support its rival local company.
Deliveroo can now continue to serve in the United Kingdom, but must act as a distinct company with its own sales and brands and not be part of Amazon.
The provision also prohibits any changes to the company’s organizational structure, while the CMA will decide whether it should conduct a full investigation into the matter to maintain the British company.