Just Eat has panned the Competition and Markets Authority’s (CMA’s) decision to approve Amazon’s £400 million investment in its rival Deliveroo.
The delivery giant has become the latest major name to heavily criticise the CMA’s ruling, branding it a “U-turn” and alleging it was based on “incorrect or misleading data”.
Last month the CMA gave provisional approval for Amazon’s cash injection into Deliveroo after it said it would go bust without the cash due to losses incurred by the coronavirus crisis.
However Just Eat, which was given its own approval by the CMA for a £6 billion merger with rival Takeaway.com just days after its Decision on Deliveroo, argued this was based on an “extremely narrow” period not representative of the company’s financial health.
“While Just Eat Takeaway does not question the very serious and perturbing nature of the Covid-19 crisis, it does not believe that this creates a “carte blanche” to assume permanent, irreversible negative impact on businesses, particularly those who are in the business of delivering food to people at home in circumstances that align with social distancing rules,” Just Eat said.
It comes just days after high street pizza behemoth Domino’s issued a 33-page submission, highlighting concerns about the “negative impact on competition, and ultimately on consumers, of Amazon’s investment in Deliveroo”.
Domino’s, which unlike its rivals Pizza Hut and Papa Johns does not work with Deliveroo, questioned why the company could not seek investment from any other investors which would pose less risk to competition.
The CMA is due to make its final decision on the deal by June.
In response to Just Eat’s criticism, Deliveroo said: “This investment is a key part of Deliveroo’s plan to provide an even better service to customers, riders and restaurants and, as we’re a British company, this will be a boost to the UK economy.
“The unprecedented health crisis we all face has disrupted businesses across the country. This investment will help us to overcome immediate and long-term challenges, allow us to continue to improve our service for customers, enable us to develop new innovations and offer people even greater choice.
“Everyone at Deliveroo is excited that Amazon, the most customer-obsessed and innovative company in the world, has chosen to invest in Deliveroo’s future.”