UK watchdog launches investigation into Amazon's planned investment in food delivery firm Deliveroo

Competition and Markets Authority says Amazon has failed to address concerns

Deliveroo appears to be down for some residents in the UAE. AP

A full scale investigation has been launched into Amazon's plan to purchase a stake in Deliveroo by British regulators.

The Competition and Markets Authority announced the probe on Friday to determine if it would dampen competition.

It said the two parties had failed to provide evidence addressing concerns that Amazon's investment in the British food delivery platform could be bad for customers, restaurants and grocers.

The market authority said the companies had not provided requested information by a December 18 deadline and would now face a thorough probe.

The agency's in-depth “phase two” review could take up to six months.

The watchdog has been investigating the deal since Amazon announced a planned £450 million ($590 million) investment in London-based Deliveroo in May.

The Competition and Markets Authority said the online retailer's investment could lead to a "substantial lessening of competition" in the expanding online food delivery market.

Deliveroo, which operates in several other European countries, said it was confident it could convince the market authority the investment would not be detrimental to competition.

Amazon's attempt to start its own restaurant delivery business in the UK failed last year.

It had faced tough competition from Deliveroo, as well as its other rivals in the UK, such as Just Eat and UberEats.

Amazon's service, called Amazon Restaurants, still operates in several US cities.

Deliveroo, founded in 2013, has about 60,000 riders delivering food from some 80,000 restaurants in 14 countries, including Australia, Italy, France, Singapore, Kuwait and Spain.