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		</div><p>Amazon has been asked explain why an attempt to buy a stake in Deliveroo will not reduce competition in the UK.</p>
<p>The Competition and Markets Authority said on Wednesday it has launched a Phase One investigation into the deal, having initially raised concerns.</p>
<p>If officials believe prices for customers could rise and competition would be reduced, an in-depth Phase Two inquiry will be launched in December.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
<p lang="en" dir="ltr">We’ve launched our investigation into Amazon’s deal with Deliveroo ð´♀ï¸ ð. </p>
<p>Find out more: <a href="https://t.co/tvRHjmfPFm">https://t.co/tvRHjmfPFm</a> <a href="https://t.co/No1gp38hn5">pic.twitter.com/No1gp38hn5</a></p>
<p>&mdash; Competition &; Markets Authority (@CMAgovUK) <a href="https://twitter.com/CMAgovUK/status/1184396785311256578?ref_src=twsrc%5Etfw">October 16, 2019</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>Deliveroo and Amazon have refused to reveal the details of the deal announced in May, beyond saying the latter had bought a minority stake as part of a £450 million fundraising round.</p>
<p>They have denied the deal would reduce competition in the online takeaway delivery sector and said the deal would allow Deliveroo to take advantage of Amazon’s tech prowess.</p>
<p>However, the CMA said in July that both sides would need to remain separate while investigators decide whether a formal inquiry is needed under merger laws.</p>
<p>Previously, Deliveroo had been in discussions with Uber Eats, but these ended and Amazon made its approach.</p>
<p>Amazon tried to take on the two established rivals in the UK with its Amazon Restaurants service, but it was quietly closed down due to tough competition.</p>
<p>Analysts suggested the move could be seen as a step towards a takeover by Amazon.</p>
<p>The CMA has the power to block any deal between Amazon and Deliveroo if officials deem it would create an unfair advantage and reduce choice for consumers.</p>
<p>Its most recent high-profile ruling blocked the attempted merger of Sainsbury’s and Asda, although it waved through Tesco’s takeover of wholesale retailer Booker.</p>
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