Tom Watson said he will ask the U.K.’s Competition and Markets Authority (CMA) to investigate Amazon’s participation in a US$575-million investment round in Deliveroo, the British food delivery company. In a series of tweets, Watson expressed concern about how the company could use the data generated from Deliveroo to grow other parts of its business. The CMA could investigate areas including the misuse of data, or whether the deal would result in unfair competition. (TechCrunch)
Talking point: There’s no guarantee that the CMA would rule in Watson’s favour, as EU regulators have approved major takeovers in the past. The European Commission approved Facebook’s takeover of Instagram and WhatsApp after Facebook requested a review to avoid potential regulatory hurdles; Facebook co-founder Chris Hughes, in a recent New York Times op-ed, called for the companies to be separated to break up Facebook’s monopoly. However, the CMA also blocked a billion-dollar deal for Sainsbury’s to buy Walmart’s U.K. subsidiary called Asda. While Amazon didn’t fully acquire Deliveroo with the US$575-million investment, it has tried to buy the firm in the past. Uber has also tried to purchase Deliveroo previously; the two companies are fierce competitors in the country.