UK watchdog investigating deal between Amazon, food service Deliveroo

A deal between Amazon and food delivery service Deliveroo is being investigated by a U.K. competition watchdog.

The Competition and Markets Authority (CMA) said there are “reasonable grounds for suspecting” that the agreement could “result in Amazon and Deliveroo ceasing to be distinct,” The Associated Press reported. 

The probe launched Friday will halt any plans the companies have to merge operations.{mosads}

Deliveroo’s delivery bikes and scooters are prominent in many European and Asian cities. 

Both companies said Friday that they will work with regulators, according to the AP. 

“There are a number of major companies within the restaurant food delivery sector and this investment will enable Deliveroo to expand, innovate and, we believe, will enhance competition,” Deliveroo said in a statement to the wire service.

Amazon spokesman Tom Parker told The Hill in a statement Friday that the company believes its minority investment in Deliveroo will benefit consumers “through increased choice and creating new jobs as more restaurants gain access to the service.”

The CMA and other European regulators have stepped up their scrutiny of tech companies. In the U.S. as well, tech giants are facing tougher questions from regulators over their market power and impact on consumers.

Updated at 11:06 a.m.