Just Eat Online takeaway ordering firm Just Eat faces a potential full-blown investigation into its takeover of rival Hungryhouse amid concerns the deal could curb competition.
The Competition and Markets Authority (CMA) said its initial probe into the acquisition – worth up to £240m – found the two firms were close competitors because of the service they offer and their reach across the UK.
It said other rivals offering delivery services, such as Deliveroo, UberEATS and Amazon Restaurants, provided little direct competition because they target different types of restaurant and did not have the same scale of service.
“The CMA is therefore concerned that the loss of competition resulting from the Just Eat/Hungryhouse merger may result in worse terms for restaurants using either of the two companies,” the CMA said.
It will now refer the deal to an in-depth competition investigation, unless Just Eat can address the concerns.
Just Eat has until May 17 to put forward proposals.The CMA also said on Wednesday it was poised to refer Capita’s takeover of Vodafone’s paging services business for a full-scale inquiry, unless the two companies can address competition concerns.It said the acquisition, announced in February, could lead to a “substantial lessening of competition” and […]