The Competition and Markets Authority (CMA) has given Just Eat and Takeaway.com the green light to merge.
The £6.2bn deal was subject to an investigation by the CMA on the basis that Takeaway.com might have been well-placed to re-enter the UK market and compete with Just Eat, had the merger not gone ahead.
As there are only a small number of companies that act as the middle-man between restaurants and customers, re-entry by Takeaway.com could have given UK customers more choice – and possibly better value for money or quality of service – when deciding what to order.
Just Eat is one of the main food delivery firms in the UK market, while Takeaway.com operates in 11 countries overseas, including the Netherlands and Germany, but has not been active in the UK since exiting in 2016.
After carefully investigating these concerns and scrutinising large volumes of the two companies’ own internal business documents, the CMA ruled that the deal poses no competition concerns.
Colin Raftery, senior director of mergers at the CMA, said: “After interrogating how this deal is likely to affect the UK market, we are satisfied that there are no competition concerns.
“Millions of people in the UK use online food platforms for takeaways and, where a merger could raise competition concerns, we have a duty to rigorously investigate whether customers could lose out. In this case, we carefully considered whether Takeaway.com could have re-entered the UK market in future, giving people more choice. It was important we investigated this properly, but after gathering additional evidence which indicates this deal will not reduce competition, it is also the right decision to now clear the merger.”