This closes a nine-month arc: the regulator ordered Amazon to pause integration work with Deliveroo in mid-2019, then in December referred the deal to a full investigation after Amazon failed to address its concerns. The provisional clearance flips that stance by adopting a failing-firm rationale — the CMA concluded Deliveroo risked collapse without fresh capital.
First-order effects
Deliveroo gets a credible path to the funding it needs to survive, with Amazon cleared to take what later becomes a 16% stake once the provisional view is finalized.
Amazon converts a contested minority investment from a compliance liability into an approved position in UK food delivery.
Second-order effects
Rival UK food-delivery operators now face a competitor backed by one of the world's largest balance sheets at precisely the moment capital is scarce, pressuring their own fundraising and pricing.
Other startups facing regulatory scrutiny gain a template: demonstrating imminent collapse can clear an otherwise problematic investment, shifting leverage toward acquirers in future reviews.
Third-order effects
If the failing-firm logic holds through final approval, competition authorities signal they will trade concentration concerns for market-exit risks during downturns — a precedent likely to shape how rescue investments in distressed tech startups are reviewed going forward.
The trend: Competition regulators are increasingly weighing a startup's survival odds against concentration harm, making rescue capital from deep-pocketed strategic investors easier to clear.
The first phase of investigation into Amazon's investment in Deliveroo found concerns that such a deal would harm competition. But now “in recent weeks, it has become clear that the coronavirus pandemic is having a significant negative impact on Deliveroo's business” https://twit…
Post #COVID19, there will likely be more conglomerates with huge market power, as they snap up smaller firms during the crisis. Case in point 👇 Amazon's investment in Deliveroo provisionally approved by UK watchdog https://www.ft.com/...
Amazon's investment in Deliveroo provisionally (but probably permanently) greenlit. Crazy quote: “Deliveroo [said] the impact of the coronavirus pandemic on its business meant that it would fail financially.” https://www.businessinsider.com/ ...
The UK's competition watchdog has provisionally cleared Amazon's investment in Deliveroo. Why the sudden U-turn? Because Deliveroo could go out of business otherwise. The company told the CMA it's being hit *hard* by the coronavirus pandemic. https://www.engadget.com/... https://…
Some deals may be collapsing because of the pandemic but in the new covid world regulators are shifting mindsets and waiving deals they wouldn't have weeks ago. CMA clears Deliveroo deal. FT story here. https://www.ft.com/...
UK competition watchdog approves Amazon's investment in @Deliveroo after the food delivery service warned “the impact of the coronavirus pandemic on its business meant that it would fail financially and exit the market without the Amazon investment”. 😳 https://www.ft.com/...
The @CMAgovUK has accepted failing firm argument in Amazon/Deliveroo merger review - the first of many COVID-related merger decisions? https://www.gov.uk/...
Amazon's investment in Deliveroo has been cleared on the basis that Deliveroo could go bust without it. (You might think lockdown has been good for delivery businesses but all the big fast food chains are closed and no office lunch deliveries.) https://www.gov.uk/...
Wow. The CMA has provisionally cleared Amazon's investment in Deliveroo “in light of a deterioration in Deliveroo's financial position as a result of coronavirus” Just four months ago it suggested the deal could damage competition https://www.gov.uk/...
We've provisionally cleared Amazon's investment in Deliveroo as part of an in-depth investigation. Read more about why: https://www.gov.uk/... https://twitter.com/...
“In light of a deterioration in Deliveroo's financial position as a result of coronavirus"), the CMA has provisionally cleared Amazon's investment in Deliveroo. https://www.gov.uk/...
Deliveroo tells UK competition regulators it's been hit hard by lockdown (via restaurant closures) - and unless Amazon investment is waved through it will go bust 👇https://www.gov.uk/ ... https://twitter.com/...
There's a narrative that quarantine life would be a boon for food delivery companies. That hasn't been true, including in China where food delivery is widely used. https://twitter.com/...