The Competition and Markets Authority has cleared Amazon’s 16% investment in Deliveroo.

In May last year, Amazon was the lead investor in Deliveroo’s $575m Series G shared funding round, but because of concerns that the deal could damage competition, the funds were frozen and a significant CMA investigation ensued.

Following a two-phase and 15-month examination of whether or not the deal would create competition concerns, which included a culmination of extensive analyses of internal documents from both businesses, a survey of more than 3,000 consumers and extensive submissions from interested third parties, the watchdog has cleared the deal.

The CMA’s assessment focused primarily on how a 16% shareholding held by Amazon would affect its incentives to compete independently with Deliveroo in both restaurant delivery and online convenience grocery delivery in the coming years.

Despite various operators in the sector expressing a strong opposition to the deal, the watchdog ultimately concluded that this level of investment will not substantially lessen competition in either market, but has said that should Amazon look to acquire a greater level of control in the Delivery company, a further investigation could go ahead.

“Today’s final decision is the result of a thorough examination of this deal and the markets in which Amazon and Deliveroo operate,” said Stuart McIntosh, inquiry chair.

“When looking at any merger, the CMA’s role is to assess whether consumers will lose out from a substantial lessening of competition. We have not found this to be the case given the scale of Amazon’s current investment, but if it were to increase its shareholding in Deliveroo, that could trigger a further investigation by the CMA.”