European restaurant delivery giant Deliveroo this morning announced that Amazon would be gobbling up a share in the company, by leading a new $575 million round of funding in it. But it looks like the e-commerce giant may be facing a little indigestion ahead.
Tom Watson, MP and deputy leader of the Labour Party, today announced that he will be asking the UK’s Competition and Markets Authority (CMA) to investigate the investment, opening the door to either imposing stronger conditions on the deal, or blocking it outright.
“It’s called surveillance capitalism,” he said today of Amazon’s approach to how it uses data from customers to build and sell products. “It’s a digital dystopia, and I shall be writing to the Competition and Markets Authority demanding they launch an investigation into this ‘investment.’”
We have contacted Watson directly to elaborate on which violation(s) he would cite in the referral and we will update as and when we hear back. Areas that the CMA might investigate could involve whether the deal would result in unfair competition, or a misuse of data.
Watson’s announcement came via a series of tweets on Twitter,