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CMA provisionally clears Just Eat - Hungryhouse merger

Staff Writer | October 12, 2017
UK's CMA has reached a provisional conclusion that Just Eat’s acquisition of Hungryhouse does not raise competition concerns. Ordering food on mobile.
Just Eat
Merger   The summary of provisional findings
Just Eat and Hungryhouse Holdings Limited (Hungryhouse) are web-based food ordering platforms in the UK. They give restaurants the opportunity to reach a wider pool of people, as well as offer consumers the convenience of choosing from a large range of takeaway providers in one place.

In the summary of provisional findings, published by the Competition and Markets Authority (CMA) today, a group of independent panel members investigating the merger has found that, on balance, it is unlikely to result in competition concerns.

The group found that Hungryhouse presently provides limited competition to Just Eat because it is much smaller in size and offers too few unique restaurants, making it increasingly difficult for Hungryhouse to attract and retain consumers.

Furthermore, it found that the industry is evolving rapidly following the entry of platforms, such as Deliveroo, UberEATS and Amazon, which also manage or facilitate delivery services on behalf of restaurants.

These companies generally present a greater competitive challenge to Just Eat than Hungryhouse, and this is likely to grow as they expand.

In reaching its provisional conclusions, the group also took account of consumers’ ability to order directly from takeaway restaurants, either by telephone, through their websites or by walking in.


 

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