🚴♂️ EU Launches Probe into Delivery Hero and Glovo
The European Commission has launched an investigation to determine if online food delivery giants Delivery Hero and Glovo engaged in anti-competitive practices. The probe follows surprise raids on these companies in June 2022 and November 2023. This investigation marks a significant step in ensuring fair competition in the fast-growing online food delivery sector.
🔍 Allegations of Market Division and Information Sharing
The EU is concerned that Delivery Hero, based in Germany, and Glovo, headquartered in Spain, might have colluded to allocate geographic markets and share commercially sensitive information, such as pricing and capacity. Delivery Hero held a minority share in Glovo from July 2018 until July 2022, when it acquired full control, which the EU suspects may have facilitated these practices.
💶 Potential Fines and Compliance Commitments
Earlier this month, Delivery Hero warned of a potential fine exceeding €400M ($434M) for alleged antitrust violations. Both Delivery Hero and Glovo have stated they are fully cooperating with the investigation and committed to adhering to all regulatory requirements. However, the opening of this probe does not imply any conclusions have been reached regarding the companies' guilt.
🔒 Focus on No-Poach Agreements
The investigation also covers concerns about possible no-poach agreements between the firms, which would restrict worker mobility. This is the first such probe formally initiated by the European Commission. "This investigation is part of our effort to protect both competition and the labor market," said EU antitrust chief Margrethe Vestager. The companies could face fines up to 10% of their annual global revenue if found guilty.
Do you think these companies engaged in unfair practices?
