Online delivery giant Just Eat is facing an in-depth investigation by the Competition and Markets Authority (CMA) over its £200m plan to take over rival Hungryhouse.
Both Just Eat and Hungryhouse take online orders from customers and act as delivery middle men between them and restaurants.
However, the CMA is worried that the combination of the two companies could mean worse terms for the restaurants.
The CMA has stated that Just Eat was given the chance to address the concerns of the competition’s watchdog earlier this month, but failed to do so.
A phase 2 investigation will now begin and the CMA will have until 2 November to make a decision.
The decision to acquire Hungryhouse was announced in December last year.