Amazon’s upcoming tie-up with Deliveroo has once again been slammed by its rivals who claim the competition and markets authority’s (CMA) decision to let it go ahead is “incomplete and unsafe”.
Last month the CMA gave the deal, which will see Amazon take a 16 per cent stake in Deliveroo, the provisional green light for the second time adjusting its reasoning for the decision in light of a major backlash from rivals.
These opposing rivals included pizza delivery giant Domino’s Pizza, one of the few UK fast food chains which is not listed on Deliveroo.
Now Domino’s has issued a further damning statement to the CMA over the proposed deal, warning that it could create a “gaping hole in the UK merger regime”, The Times reported.
In a formal submission to the CMA, Domino’s argued that the ruling would give Amazon “cart blanche” to raise its stake in the company significantly to 50 per cent without further scrutiny.
This would in turn encourage other companies to buy up minor stakes in their rivals before building their stake and exerting significant influence, thus diminishing competition.
In its second major criticism of the CMA’s decision making, Domino’s also accused the body of ignoring its previous concerns and warned it not to “shy away from its statutory duties”.
Meanwhile Just Eat Takeaway, which has itself completed a string of mergers and acquisitions over the past six months, said the CMA had not taken into consideration the possibility Amazon could include the service in its Prime membership.
The food delivery group added that the CMA should ban Amazon from being able to increase its stake to more than 25 per cent.
Its final decision on the deal is set for August 6 after being delayed by two months, and could yet change again.