Last week the UK Competion Authority (the "CMA") served an initial enforcement order regarding Amazon's investment in Deliveroo. The order is unusual as Amazon only took a minority stake, but it does highlight the impact the CMA and other regulators can have in the context of strategic investments.
The CMA claimed that they had "reasonable grounds for suspecting" that Amazon and Deliveroo had "ceased to be distinctive". This marks a more active approach by the CMA particularly in relation to Big Tech and their acquisitions and investments into smaller companies.
In any strategic investment, a lot of negotiation is undertaken by the rights, controls and data/information flows given by a company to the strategic investor. It will be these same areas that the CMA will be interested in.
For more information contact our Technology team.
While reviews into mergers by the CMA are relatively common, it is unusual for the regulator to examine acquisitions of minority stakes.