The European Commission is probing Delivery Hero and Glovo for alleged anticompetitive practices. The investigation, which follows raids in 2022 and 2023, will examine if the companies shared market info and avoided poaching employees.
On July 23, 2024, the European Commission announced it is formally investigating Delivery Hero and Glovo for possible cartel behavior. The Berlin-based Delivery Hero and its Spanish subsidiary, Glovo, are under scrutiny to determine if they engaged in anticompetitive agreements. This probe follows unannounced raids on their offices in July 2022 and November 2023. The Commission aims to find out if the companies allocated geographic markets, shared sensitive commercial information, or agreed not to poach each other's employees.
The investigation covers activities dating back to when Delivery Hero held a minority share in Glovo from July 2018 and then acquired full control in July 2022. This case marks the first time the European Commission has looked into anticompetitive agreements in the context of a minority shareholding. The Commission's concerns include potential market allocation and information sharing that could have been facilitated by Delivery Hero's stake in Glovo.
A spokesperson from Glovo confirmed the investigation and emphasized that it does not imply any conclusions have been reached. "The investigation does not mean that the European Commission has concluded on an actual infringement of competition law nor does it prejudge the outcome. Glovo will fully cooperate with the European Commission and is committed to meeting all compliance and regulatory requirements," said the spokesperson. Delivery Hero has also been contacted for a response.
This investigation could have significant implications for the food delivery market in Europe. If found guilty, Delivery Hero and Glovo could face heavy fines and be forced to change their business practices. The European Commission's probe highlights the importance of fair competition and the need for companies to adhere strictly to competition laws. The outcome of this investigation will be closely watched by other companies in the industry and could set a precedent for future cases involving minority shareholdings.
Will the EU's investigation change the food delivery market?
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