Just Eat was given the chance to address the concerns of the Competition and Markets Authority (CMA) earlier this month, but has failed to do so, it said.
The CMA will now progress to a phase 2 investigation, and has until November 2 to make a decision.
The investigation centres around concerns that restaurants could end up with a worse deal after the merger between the two online takeaway services.
“Following its initial investigation into the merger, the CMA has found that the companies are close competitors because of the similarity of their service and their broad geographical coverage,” the CMA said.
Just Eat and Hungryhouse had argued that they would not wield too much power over the market because competition had been bolstered by a series of new entrants such as Deliveroo and UberEATS.But the CMA rejected the claim, saying these companies had a different operating model and therefore could not be considered direct rivals.The escalation of the investigation comes as Just Eat continues to contend with internal upheaval in management .Last month executive chairman […]