Jumat, 17 April 2020

Coronavirus: Some hospitals will run out of fully protective gowns 'within 24 hours' - Sky News

Some NHS trusts are going to run out of fully protective gowns within the next 24 to 48 hours, with thousands of doctors and nurses voicing concerns about inadequate supplies of personal protective equipment (PPE).

NHS Providers, which represents hospital trusts, says supplies of long-sleeved disposable fluid repellent gowns have been exhausted despite remaining stock being "carefully allocated" to the hospitals most in danger of running out.

On Friday, Public Health England changed its guidance - asking doctors and nurses to work without full-length gowns and to reuse items - but the updated stance has drawn criticism from several healthcare bodies.

Medics still worry about a lack of personal protective equipment
Image: Medics still worry about a lack of personal protective equipment

The British Medical Association has warned that doctors and nurses should not be asked to "put their lives on the line" to save others, and said PHE's decision was "a further admission of the dire situation that some doctors and healthcare workers continue to find themselves in because of government failings".

Dr Rob Harwood, who chairs the BMA's consultants committee, said: "If it's being proposed that staff reuse equipment, this must be demonstrably driven by science and the best evidence - rather than availability - and it absolutely cannot compromise the protection of healthcare workers."

The Royal College of Nursing echoed these concerns and claimed it was not consulted about the change in guidance, adding it was "unacceptable" if PPE was not provided in a healthcare setting.

At least 50 NHS workers have now died after contracting coronavirus.

More from Covid-19

According to a BMA survey, approximately one third of doctors working in high-risk areas said they were sometimes pressurised to work without adequate protection.

Meanwhile, 50% of doctors who work in high-risk areas said there were shortages of long-sleeved disposable gowns and disposable goggles - or no supply at all. In the survey, 56% said the same regarding full-face visors.

Lights on London landmarks for carers in the UK.
London lights up for carers

One of the doctors surveyed said current levels of PPE left them feeling as though they were being "thrown to the wolves", with BMA council chairman Dr Chaand Nagpaul warning: "Too many doctors and healthcare staff have already lost their lives. We cannot afford to risk losing any more."

A separate survey by the Royal College of Nursing revealed that 50% of nursing staff have also felt pressure to work without appropriate PPE during the coronavirus crisis.

Of the 14,000 respondents, 12% said they had relied on face or eye protection that they had bought themselves or made at home, while just 54% said they believed they had an adequate supply of alcohol hand gel.

Just over half of those working in high-risk areas said they had been asked to reuse items of PPE that were marked as "single use" by manufacturers.

The Royal College of Nursing has previously urged its members to refuse to treat patients as a "last resort" if adequate PPE cannot be provided.

Public Health England's new guidance says PPE should be reused "until conformation of adequate resupply is in place", and that "some compromise is needed to optimise the supply of PPE in times of extreme shortages".

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A previous recommendation that stipulated long-sleeved disposable fluid repellent gowns should be worn when treating COVID-19 patients was reversed.

If these gowns are not available, clinical staff are now being advised to wear "disposable, non-fluid repellent gowns or coveralls" or "washable surgical gowns" with aprons, and to wash their forearms afterwards.

Saffron Cordery, the deputy chief executive of NHS Providers, has said it is hoped the disruption was short-lived, and that gowns would start arriving "consistently and reliably rather than in the current fits and starts".

National leaders have told NHS Providers that the supply of aprons, fluid repellent masks, gloves and face masks "currently look fine".

The Welsh government has said that it currently does not anticipate any disruption to its PPE supplies.

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2020-04-18 02:21:47Z
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Ministers in lockdown war over whether to lift lockdown in May or wait until summer - Daily Mail

Ministers in lockdown war: Frustration grows in the Cabinet over whether to lift the lockdown in May or wait until summer

  • A timeframe on the UK's window of lockdown is now being contested 
  • Ministers are to decide whether restrictions should be lifted in May or in summer
  • Lockdown could be lifted after the most recent extension in three weeks time
  • There are real concerns regarding a possible second spike in COVID-19 cases 

Ministers are torn over whether to lift the lockdown at the start of May or wait until the summer. 

Frustration is growing in the Cabinet over a lack of debate on the issue as the damage to the economy mounts. It emerged on Friday night that ministers are considering two possible strategies, which are being discussed by their scientific advisers. 

The first involves extending the full lockdown well into early summer to ‘push the numbers right down’ – although this would risk further damaging the economy. 

The second could see restrictions lifted much earlier, potentially after the current three-week extension expires on May 8 – even though it could risk a second virus ‘peak’. 

Ministers are now looking into the possibilities of a lockdown end-date, after Dominic Raab announced a three-week extension for the UK on Thursday

Ministers are now looking into the possibilities of a lockdown end-date, after Dominic Raab announced a three-week extension for the UK on Thursday

It came as a minister warned businesses they would have to adapt to a ‘new normal’ after the crisis has passed. This led to concerns restrictions could continue until a vaccine is ready or even afterwards – with more working from home and possible staggered work starts to try to cut the impact of the rush hour. 

Foreign Secretary Dominic Raab announced on Thursday that the lockdown would continue for another three weeks, as he unveiled five tests ministers would use before deciding if it is safe to lift the restrictions. 

It is believed some ministers are unhappy that there has not been a proper debate in Cabinet about when the lockdown could end. 

On Friday Transport Secretary Grant Shapps said departments had been asked to come up with exit proposals in two weeks. The Government was forced to deny claims by Labour that it was in ‘limbo’ while Boris Johnson was recovering from the virus. 

Although the Prime Minister spoke to Mr Raab on Thursday, he has not been working on his government boxes. Scientists say extending the lockdown into the summer would drastically reduce transmission rates and the ‘extremely low’ level of cases would make it easier for health officials to manage the pandemic. 

On Friday Transport Secretary Grant Shapps said departments had been asked to come up with exit proposals in two weeks

On Friday Transport Secretary Grant Shapps said departments had been asked to come up with exit proposals in two weeks

A man wears a face mask whilst waiting for a train at Victoria underground train station on April 17, as London continues a prolonged period of lockdown

A man wears a face mask whilst waiting for a train at Victoria underground train station on April 17, as London continues a prolonged period of lockdown

Business Secretary Alok Sharma told the Confederation of British Industry: ‘We have to accept that there will be a new normal'

Business Secretary Alok Sharma told the Confederation of British Industry: ‘We have to accept that there will be a new normal'

This is because they would have the capacity to isolate anyone who tests positive, as well as tracing and testing their contacts. 

However, such an approach would mean that the economy would continue to stall. The second option could see the lockdown lifted in as little as three weeks. But the rate of community transmission would still probably be relatively high at this point, and it would not be possible to individually track all cases. 

This could risk a dangerous resurgence of the disease. A source close to the Government confirmed that, whichever option is followed, the plan is to lift the lockdown in stages – with outdoor spaces likely to be first and pubs last. 

Under plans being drawn up, certain social distancing measures, including working from home where possible, will stay in place until there is a vaccine. Some experts believe this to be at least a year away. 

Experts advising the Government have warned they are sceptical about the role a highly publicised NHS app could play in helping to end the coronavirus lockdown. It would allow mobile phones to trace users who have come into contact with infected people, alerting them to get tested.

Chief Medical Officer Chris Whitty (left), Foreign Secretary Mr Raab and Chief Scientific Adviser Sir Patrick Vallance (right) relayed the latest updates during a Downing Street briefing

Chief Medical Officer Chris Whitty (left), Foreign Secretary Mr Raab and Chief Scientific Adviser Sir Patrick Vallance (right) relayed the latest updates during a Downing Street briefing

But scientists say at least 80 per cent of the population would need to download the app for it to be effective, which is extremely unlikely. Mr Shapps said the pandemic could bring an end to the rush hour as businesses and governments move towards staggered shifts and remote working. 

He told the BBC’s Today programme: ‘The world probably will not go back to how it was before in a whole manner of different ways. ‘It may well be in the future that companies say, “it’s actually worked very well having some of our staff work from remote locations, why don’t we carry on doing that?”’ 

Business Secretary Alok Sharma told the Confederation of British Industry: ‘We have to accept that there will be a new normal.

'The level at which social distancing will continue, you can have a discussion around that, but clearly we are not going to go back to the way we were before this pandemic.’

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2020-04-17 23:08:36Z
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Coronavirus UK: Alok Sharma admits vaccine could be months away - Daily Mail

Coronavirus vaccine will take 'many months' and 'there are no guarantees' one can be found, Alok Sharma admits as Number 10 announces first trials will begin next week - after hopes it could be ready by September

  • Business Secretary Alok Sharma gave the sobering warning at today's briefing
  • Scientific adviser Sir Patrick Vallance also said a final jab was 'some way off'
  • Leading experts around the world are racing to find a vaccine for COVID-19
  • University of Oxford scientists are confident they can get a jab for the autumn
  • They are planning to manufacture a million doses of their jab for September 
  • Learn more about how to help people impacted by COVID

A coronavirus vaccine will take 'many months' and there are 'no guarantees' one will ever be found, ministers warned tonight.

Business Secretary Alok Sharma gave the sobering warning at Downing Street's press conference tonight after it emerged a new task-force had been set up to support scientists in their attempts to find a life-saving jab.  

Downing Street's chief scientific adviser Sir Patrick Vallance also insisted a vaccine was not around the corner and that a final jab was 'some way off'.   

However, he agreed that the industry has 'stepped up' to the challenge, as the crisis in Britain appears to slow down.

As many as 510 British volunteers could be given the first dose of a potential coronavirus vaccine within the next week, leading researchers say.

Oxford University scientists are already manufacturing a million doses of their jab to be available by September because they are confident it will prove successful. 

Leading experts around the world are scrambling to find a vaccine, amid fears the infection will return in waves.  

In hope of speeding up the race for a vaccine, Business Secretary Alok Sharma today unveiled a new taskforce

In hope of speeding up the race for a vaccine, Business Secretary Alok Sharma today unveiled a new taskforce

How a vaccine is made: Researchers racing to find a cure extract the virus' genetic code and inject part of the DNA sequence into animals to produce antibodies, which fight off diseases. These antibodies - which recognise COVID-19 and know how to beat it - are given to humans

How a vaccine is made: Researchers racing to find a cure extract the virus' genetic code and inject part of the DNA sequence into animals to produce antibodies, which fight off diseases. These antibodies - which recognise COVID-19 and know how to beat it - are given to humans

5,000 CORONAVIRUS PATIENTS IN UK TO TAKE PART IN OXFORD DRUG TRIAL 

More than 5,000 coronavirus patients in the UK have volunteered to take part in a drug trial run by the University of Oxford to find a treatment for COVID-19.

The programme is called the RECOVERY Trial (The Randomised Evaluation of COV-id19 thERapY) and is the world's biggest single trial of drugs to treat the coronavirus.

The university got the support of Chief Medical Officer Professor Chris Whitty and put out a plea to doctors around the country to enrol patients in the voluntary trial.

Volunteers have since joined the trial from more than 160 NHS trusts around the country and scientists are hopeful more people will continue to sign up.

Medics have not put a number on the amount of people the trial needs in order to be successful but has said the more participants the trial has, the more likely it will be the team will find answers.

Participants will receive one of four drugs currently on the market — including the anti-malaria drug touted by Donald Trump, known as hydroxychloroquine.

The other drugs being looked at as a treatment for COVID-19 include a combination of Lopinavir and Ritonavir (known by the brand name Kaletra), which is used to treat HIV; low-dose Dexamethasone,a steroid used to reduce inflammation; and azithromycin, a commonly used antibiotic.

Similar trials are being set up around the world, which run independently to the Recovery Trial, but none have garnered as many participants as the UK programme.

Business Secretary Alok Sharma said at the Downing Street press conference this evening: 'We cannot put a date on when we will get a vaccine. But, we live in a country with a rich history of pioneering science.

'Producing a vaccine is a colossal undertaking. A complex process which will take many months. There are no guarantees. 

'But the Government is backing our scientists, betting big to maximise the chance of success.'

Scientists at the University of Oxford said previously they believed a vaccine could be available for use by the general public in September. 

Sarah Gilbert, a professor of vaccinology at the university, and her team have already created a potential vaccine that is shortly due to begin human trials.   

However, she said there is always an unknown and scientists can never be sure that vaccines are going to work. 

Professor Gilbert has previously said she was 80 per cent confident of the vaccine's success, adding: 'Personally, I have a high degree of confidence.

'This is my view, because I've worked with this technology a lot, and I've worked on the Mers vaccine trials, and I've seen what that can do.

'And, I think, it has a very strong chance of working.' 

Asked when the first dose of the vaccine might be delivered to a trial volunteer, Professor Andrew Pollard, chief Investigator on the study said it depended on when the last part of the testing from the manufacturing had concluded.

However, he added: 'But it should be within the next week or so, but we'll, we'll confirm that as soon as we can.'

Another limiting factors is manufacturing capacity. Professor Adrian Hill, director of the Jenner Institute at Oxford, estimates we will need 'hundreds of millions of doses, ideally by the end of this year' to finally get the pandemic under control. 

The hunt for a coronavirus vaccine - which normally takes one to two years - has been given a boost by the launch of a new Government taskforce.

Led by chief scientific adviser Sir Patrick Vallance, and deputy chief medical officer Professor Jonathan van Tam, it will support efforts to rapidly develop a vaccine as soon as possible.

As well as providing industry and research institutions with the resources and support, the group will review regulations to allow quick and safe vaccine trials.

It will also scale up manufacturing, so that when a vaccine becomes available, it can be produced quickly and in mass quantities.

Twenty-one new research projects combating coronavirus will receive Government funding from a £14million investment. This included a trial at Imperial College London for a vaccine. 

University of Oxford scientists are working to develop a vaccine that could prevent people from getting the coronavirus

University of Oxford scientists are working to develop a vaccine that could prevent people from getting the coronavirus

Oxford's vaccine programme has already recruited 510 people, aged between 18 and 55, to take part in the first trial. They will receive either the ChAdOx1 nCoV-19 vaccine - which has been developed in Oxford - or a control injection for comparison

Oxford's vaccine programme has already recruited 510 people, aged between 18 and 55, to take part in the first trial. They will receive either the ChAdOx1 nCoV-19 vaccine - which has been developed in Oxford - or a control injection for comparison

HOW MANY VACCINES ARE CURRENTLY IN DEVELOPMENT? 

There are three leading vaccine candidates – one from China and two from companies in the US, it was revealed earlier this week. 

Another 67 vaccines, developed by scientists worldwide including teams from the UK, are also working towards trials in humans.

WHO's list - published at the weekend - comes as the global COVID-19 death count passed 100,000.

The list shows Beijing Institute of Biotechnology, working with Hong Kong's CanSino Bio, are leading the charge with their vaccine, called Ad5-nCoV.

In a listing with the Hong Kong Stock Exchange, CanSino Bio said it plans to move to phase II trials with the vaccine candidate in China 'soon'. 

Of the US-based drugs companies, Massachusetts-based Moderna got regulatory approval to move to human trials last month.

Forty-five participants in Seattle received the experimental jab - developed with the National Institutes of Health (NIH) - in March to test its safety.

There is no chance participants could get infected from the shots, because they don’t contain the virus itself. 

Moderna took a different route to traditional vaccine techniques. Normally a weaker bug is planted in the body – like the MMR vaccine.

But Moderna’s sees messenger RNA stimulate the immune system to make similar proteins to the killer virus, which it can then combat.

Pennsylvania-based Inovio Pharmaceuticals began its human trials last week, in 40 healthy volunteeers in Philadelphia and Missouri.  

Inovio's approach is what's called a DNA vaccine, made using a section of the virus's genetic code packaged inside a piece of synthetic DNA.  

This follows the Government's £250million pledge to develop a vaccine.

Representatives from Government, academia and industry will form the taskforce, including Government life sciences champion Sir John Bell, as well as AstraZeneca, and the Wellcome Trust.

Mr Sharma, who announced the taskforce at the daily Downing Street press conference, said: 'UK scientists are working as fast as they can to find a vaccine that fights coronavirus, saving and protecting people's lives.

'We stand firmly behind them in their efforts.

'The vaccine taskforce is key to co-ordinating efforts to rapidly accelerate the development and manufacture of a potential new vaccine, so we can make sure it is widely available to patients as soon as possible.'

The group will focus on five strands of activity including supporting the discovery of potential coronavirus vaccines and preparing the UK for clinical vaccine testing and manufacturing.

It is also working with the Bioindustry Association, which has set up an industry-led group, to accelerate vaccine development and manufacturing.

Sir Patrick said: 'The taskforce will ensure that any potential coronavirus vaccine, when available, can be produced quickly and at scale so it can be made available to the public as quickly as possible.'

One project led by the University of Oxford will trial an anti-malarial drug to determine whether it could diminish the effects of Covid-19 on people in high risk groups.

Across the UK GP surgeries have been invited to take part in the trial to determine whether it could reduce the need for affected patients to go to hospital and speed up their recovery.

Imperial College London, which is testing a vaccine against coronavirus that aims for the body to produce more protective antibodies, will also receive funding.

Another project is Public Health England's study on how Covid-19 can be transmitted from person to person by determining how long it can survive in the air and on different materials found in hospitals.

Chief medical officer, Professor Chris Whitty, said: 'The UK has some of the best vaccine scientists in the world, but we need to take account of the whole development process.

'This taskforce will ensure the UK can take an end-to-end view.

'This includes funding research, like the recent NIHR/UKRI call, and ensuring manufacturing capability to deliver a Covid-19 vaccination as quickly as possible.'

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2020-04-17 22:21:04Z
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Coronavirus: Medics to be asked to reuse gowns amid shortage fears - BBC News

Doctors and nurses in England are to be asked to treat coronavirus patients without fully protective gowns and to reuse equipment due to shortage fears.

The decision came in a reversal of guidance to hospitals from Public Health England on Friday.

Earlier this week, the BBC reported the plan was being considered as a "last resort".

It comes as NHS Providers warned some hospitals' supplies could run out in 24 hours.

Chris Hopson, head of the association, which represents healthcare trusts across England, said in a tweet: "We have now reached the point where the national stock of fully fluid repellent gowns and long-sleeved laboratory coats will be exhausted in the next twenty-four to forty-eight hours."

He said that national leaders have left "no stone unturned" - but gowns that were ordered weeks ago are currently only arriving in "fits and starts".

Public Health England changed its guidance, which until now required long-sleeved, disposable, fluid-repellent gowns for people treating Covid-19 patients.

Now it says if these gowns are not available, staff can wear washable medical gowns or non-fluid-repellent equipment.

Documents seen by the BBC said the measures were considered earlier this week to cope with "acute supply shortages"

It comes as the UK recorded 847 new coronavirus-related deaths in hospitals on Thursday, taking the total to 14,576.

A Department of Health spokesman said: "New clinical advice has been issued today to make sure that if there are shortages in one area, frontline staff know what PPE to wear instead to minimise risk."

And Health Secretary Matt Hancock said he "would love to be able to wave a magic wand" to increase supply of personal protective equipment (PPE).

"But given that we have a global situation in which there is less PPE in the world than the world needs, obviously it's going to be a huge pressure point," he told a virtual committee of MPs.

Mr Hancock admitted the supply of gowns was "tight" but said he was aiming to get enough gowns to staff this weekend.

He added that the government was doing everything it could "to get that PPE to the front line".

Dr Rob Harwood, consultants committee chairman at the British Medical Association, said: "If it's being proposed that staff reuse equipment, this must be demonstrably driven by science and the best evidence - rather than availability - and it absolutely cannot compromise the protection of healthcare workers.

"Too many healthcare workers have already died. More doctors and their colleagues cannot be expected to put their own lives on the line in a bid to save others, and this new advice means they could be doing just that. It's not a decision they should have to make."

At least 50 NHS workers have now died after contracting coronavirus.

Shadow health secretary Jonathan Ashworth said: "Week after week, we hear of problems in PPE getting to the front line despite what ministers tell us at Downing Street press conferences.

"This ongoing failure needs fixing and ministers must explain how they will fix it urgently."

In other developments:

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2020-04-17 21:00:00Z
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Amazon's investment in virus-hit Deliveroo provisionally cleared by UK antitrust watchdog - CNBC

A food delivery cycle courier waits for orders from Deliveroo, operated by Roofoods, in London, U.K., on Dec. 22, 2016.

Simon Dawson | Bloomberg | Getty Images

Britain's competition watchdog has provisionally cleared Amazon's investment in food delivery start-up Deliveroo.

The Competition and Markets Authority said Friday that it had taken the decision due to a "deterioration" in Deliveroo's financial position caused by the coronavirus outbreak.

"Without additional investment, which we currently think is only realistically available from Amazon, it's clear that Deliveroo would not be able to meet its financial commitments and would have to exit the market," Stuart McIntosh, chair of the CMA's independent inquiry group, said in a statement.

"This could mean that some customers are cut off from online food delivery altogether, with others facing higher prices or a reduction in service quality. Faced with that stark outcome, we feel the best course of action is to provisionally clear Amazon's investment in Deliveroo."

Amazon was the lead investor in Deliveroo's $575 million funding round announced back in May last year. But antitrust regulators froze the e-commerce giant's minority stake, citing competition concerns raised by the deal.

Amazon has in the past operated an online takeout business, called Amazon Restaurants, but it shuttered U.K. operations in 2018 and closed down completely the following year. The CMA previously argued that Deliveroo's cash injection from Amazon could reduce competition by removing the possibility of the e-commerce giant re-entering the market.

Both companies disputed the suggestion that Amazon would be hesitant to re-enter the U.K. market alone as a result of the deal. They also pointed out the possibility for other players like U.S. firm DoorDash and Spanish start-up Glovo to enter the British food delivery space.

UK lockdown hits food delivery

Many restaurants in the U.K. have been forced to close as a result of the Covid-19 lockdown measures, prompting Britons to turn to food delivery services such as Deliveroo and Uber Eats.

The CMA said that while Deliveroo had witnessed a recent boost to grocery sales, these were "limited" and failed to make up for losses in its restaurant business.

Deliveroo had recently informed the regulator that the impact of the coronavirus epidemic meant it would "fail financially and exit the market without the Amazon investment." 

It comes shortly after Britain's government announced a three-week extension to the country's lockdown restrictions. 

The CMA said it was now asking for feedback on its provisional finding by May 11 and that the deadline for its final decision was June 11.

Deliveroo said on Friday that it was "delighted" with the CMA's decision, adding it would "be a boost to the U.K. economy."

"The unprecedented health crisis we all face has disrupted businesses across the country," the company said in a statement. "This investment will help us to overcome immediate and long-term challenges, allow us to continue to improve our service for customers, enable us to develop new innovations and offer people even greater choice."

An Amazon spokesperson said in a statement that its investment in Deliveroo "will benefit both consumers of Deliveroo's service and its small business restaurant partners."

The Amazon-Deliveroo deal isn't the only transaction the CMA has been investigating. It launched a probe into Dutch firm Takeaway.com's £6.2 billion ($7.7 billion) takeover of British rival Just Eat at the start of the year, but recently lifted restrictions preventing the two companies from integrating. The watchdog said its investigation remains ongoing.

Online food delivery has seen intensifying competition with a variety of players operating in the space, from GrubHub to Uber Eats. The market last year saw increased signs of consolidation, in the form of Takeaway.com's Just Eat deal and the sale of Uber's Eats business in India to local operator Zomato.

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2020-04-17 18:11:27Z
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Amazon's investment in virus-hit Deliveroo provisionally cleared by UK antitrust watchdog - CNBC

A food delivery cycle courier waits for orders from Deliveroo, operated by Roofoods, in London, U.K., on Dec. 22, 2016.

Simon Dawson | Bloomberg | Getty Images

Britain's competition watchdog has provisionally cleared Amazon's investment in food delivery start-up Deliveroo.

The Competition and Markets Authority said Friday that it had taken the decision due to a "deterioration" in Deliveroo's financial position caused by the coronavirus outbreak.

"Without additional investment, which we currently think is only realistically available from Amazon, it's clear that Deliveroo would not be able to meet its financial commitments and would have to exit the market," Stuart McIntosh, chair of the CMA's independent inquiry group, said in a statement.

"This could mean that some customers are cut off from online food delivery altogether, with others facing higher prices or a reduction in service quality. Faced with that stark outcome, we feel the best course of action is to provisionally clear Amazon's investment in Deliveroo."

Amazon was the lead investor in Deliveroo's $575 million funding round announced back in May last year. But antitrust regulators froze the e-commerce giant's minority stake, citing competition concerns raised by the deal.

Amazon has in the past operated an online takeout business, called Amazon Restaurants, but it shuttered U.K. operations in 2018 and closed down completely the following year. The CMA previously argued that Deliveroo's cash injection from Amazon could reduce competition by removing the possibility of the e-commerce giant re-entering the market.

Both companies disputed the suggestion that Amazon would be hesitant to re-enter the U.K. market alone as a result of the deal. They also pointed out the possibility for other players like U.S. firm DoorDash and Spanish start-up Glovo to enter the British food delivery space.

UK lockdown hits food delivery

Many restaurants in the U.K. have been forced to close as a result of the Covid-19 lockdown measures, prompting Britons to turn to food delivery services such as Deliveroo and Uber Eats.

The CMA said that while Deliveroo had witnessed a recent boost to grocery sales, these were "limited" and failed to make up for losses in its restaurant business.

Deliveroo had recently informed the regulator that the impact of the coronavirus epidemic meant it would "fail financially and exit the market without the Amazon investment." 

It comes shortly after Britain's government announced a three-week extension to the country's lockdown restrictions. 

The CMA said it was now asking for feedback on its provisional finding by May 11 and that the deadline for its final decision was June 11.

Deliveroo said on Friday that it was "delighted" with the CMA's decision, adding it would "be a boost to the U.K. economy."

"The unprecedented health crisis we all face has disrupted businesses across the country," the company said in a statement. "This investment will help us to overcome immediate and long-term challenges, allow us to continue to improve our service for customers, enable us to develop new innovations and offer people even greater choice."

The Amazon-Deliveroo deal isn't the only transaction the CMA has been investigating. It launched a probe into Dutch firm Takeaway.com's £6.2 billion ($7.7 billion) takeover of British rival Just Eat at the start of the year, but recently lifted restrictions preventing the two companies from integrating. The watchdog said its investigation remains ongoing.

Online food delivery has seen intensifying competition with a variety of players operating in the space, from GrubHub to Uber Eats. The market last year saw increased signs of consolidation, in the form of Takeaway.com's Just Eat deal and the sale of Uber's Eats business in India to local operator Zomato.

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2020-04-17 14:23:02Z
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Amazon's investment in virus-hit Deliveroo provisionally cleared by UK antitrust watchdog - CNBC

A food delivery cycle courier waits for orders from Deliveroo, operated by Roofoods, in London, U.K., on Dec. 22, 2016.

Simon Dawson | Bloomberg | Getty Images

Britain's competition watchdog has provisionally cleared Amazon's investment in food delivery start-up Deliveroo.

The Competition and Markets Authority said Friday that it had taken the decision due to a "deterioration" in Deliveroo's financial position caused by the coronavirus outbreak.

"Without additional investment, which we currently think is only realistically available from Amazon, it's clear that Deliveroo would not be able to meet its financial commitments and would have to exit the market," Stuart McIntosh, chair of the CMA's independent inquiry group, said in a statement.

"This could mean that some customers are cut off from online food delivery altogether, with others facing higher prices or a reduction in service quality. Faced with that stark outcome, we feel the best course of action is to provisionally clear Amazon's investment in Deliveroo."

Amazon was the lead investor in Deliveroo's $575 million funding round, announced back in May last year. But antitrust regulators froze the e-commerce giant's stake, citing competition concerns raised by the deal.

Amazon has operated an online takeout business in the past, called Amazon Restaurants, but it shuttered U.K. operations in 2018 and closed down completely the following year. The CMA has argued that Deliveroo's cash injection from Amazon could reduce competition by removing the possibility of the e-commerce giant re-entering the market.

Both companies disputed the suggestion that Amazon would be hesitant to re-enter the U.K. market alone as a result of the deal. They also pointed out the possibility for other players like U.S. firm DoorDash and Spanish start-up Glovo to enter the British food delivery space.

Online food delivery has seen intensifying competition with a variety of players operating in the space, from GrubHub to Uber Eats. It's also an industry providing critical services for many people now stuck at home due to the coronavirus pandemic.

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2020-04-17 13:21:51Z
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