UK regulator to further probe Amazon-Deliveroo deal

Amazon was revealed as the lead investor in a $575 million funding round in Deliveroo. (AFP)
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Updated 27 December 2019

UK regulator to further probe Amazon-Deliveroo deal

  • Amazon and Deliveroo had not cleared the doubts raised earlier this month regarding the stake acquisition

Britain’s competition regulator has decided to deepen its investigation into Amazon.com Inc’s purchase of a stake in online food delivery group Deliveroo, a move that could delay the closure of the deal.

The Competition and Markets Authority (CMA), which launched a probe in June, on Friday moved to “Phase 2” of the investigation as both Amazon and Deliveroo did not offer remedies to its concerns before a Dec. 18 deadline, the regulator said.

Amazon led a $575 million fundraising in Deliveroo in May and the probe is likely to put at risk the e-commerce giant’s efforts to compete with Uber Eats, Just Eat and Takeaway.com in food delivery.

Earlier this month, the CMA had found that Amazon’s investment into Deliveroo in its current form could harm competition in restaurant food delivery and online convenience grocery delivery.

Both Deliveroo and Amazon had defended the deal after the initial probe and the Seattle-based company had said the funding would “lead to more pro-consumer innovation.”

Deliveroo on Friday said it was working with the CMA and said the deal would “add to competition, helping restaurants to grow their businesses, creating more work for riders and increasing choice for customers.”

Amazon did not immediately respond to a request for comment.


Big oil feels the heat on climate as industry leader promises: ‘We will be different’

Updated 22 January 2020

Big oil feels the heat on climate as industry leader promises: ‘We will be different’

  • Trump singles out ‘prophets of doom’ for attack
  • Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal

LONDON: Teenage environmental activist Greta Thunberg slammed inaction over climate change as the global oil industry found itself under intense scrutiny on the opening day of the World Economic Forum in Davos.

The teenage campaigner went head to head with US President Donald Trump, who dismissed climate “prophets of doom” in his speech.
She in turn shrugged off the US president’s pledge to join the economic forum’s initiative to plant 1 trillion trees to help capture carbon dioxide.
“Planting trees is good, of course, but it’s nowhere near enough,” Thunberg said. “It cannot replace mitigation. We need to start listening to the science and treat this crisis with the importance it deserves,” the 17-year-old said.
The 50th meeting of the World Economic Forum was dominated by the global threat posed by climate change and the carbon economy.
The environmental focus of Davos 2020 caps a year when carbon emissions from fossil fuels hit a record high, and the devastating effects of bushfires in Australia and other climate disasters dominated the news.
Oil company executives from the Gulf and elsewhere are in the spotlight at this year’s Davos meeting as they come under increased pressure to demonstrate how they are reducing their carbon footprint.
“We are not only fighting for our industry’s life but fighting for people to understand the things that we are doing,” said Vicki Hollub, CEO of Occidental, the US-based oil giant with extensive oil operations in the Gulf. “As an industry when we could be different — we will be different.”

‘Planting trees is good, but nowhere near enough,’ activist Greta Thunberg told Davos. (Shutterstock)

She said the company was getting close to being able to sequester significant volumes of CO2 in the US Permian Basin, the heartland of the American shale oil industry which is increasingly in competition with the conventional oil producers of the Arabian Gulf.
“The Permian Basin has the capacity to store 150 gigatons of CO2. That would be 28 years of emissions in the US. That’s the prize for us and that’s the opportunity. People say if you’re sequestering in an oil reservoir then you are producing more oil, but the reality is that it takes more CO2 to inject into a reservoir than the barrel of oil that it makes come out,” Hollub said.
The challenge Occidental and other oil companies face is to make investors understand what is happening in this area of carbon sequesteration, she added.
The investment community at Davos is also looking hard at the oil industry in the face of mounting investor concerns.
Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal. It accused some of these groups of failing to live up to the World Economic Forum goal of “improving the state of the world.”