European Commission Launches Antitrust Investigation into Delivery Hero and Glovo

The European Commission has initiated a formal antitrust investigation into food delivery giants Delivery Hero and Glovo, probing allegations that the companies may have engaged in cartel activities, according to a press release issued on Tuesday.

The investigation centers on whether the companies participated in anti-competitive practices prior to Delivery Hero’s complete acquisition of Glovo in July 2022. Before the acquisition, Delivery Hero, headquartered in Germany, held a minority stake in the Barcelona-based Glovo, as reported by Euractiv TV.

The Commission’s probe will scrutinize if Delivery Hero and Glovo allocated geographic markets, shared commercially sensitive information or agreed not to poach each other’s employees. Such actions, if proven, would contravene EU competition laws prohibiting cartels and restrictive business practices.

The European Commission’s investigation into Delivery Hero and Glovo is the latest in a series of antitrust actions targeting major technology companies. Last month, the Commission accused Microsoft of violating antitrust rules by bundling its Teams app with other products. In March, Apple was hit with the third-largest antitrust fine in EU history over its music streaming app practices, a penalty the company is currently contesting.

Delivery Hero, listed on the Frankfurt Stock Exchange with a market capitalization of €5.32 billion, disclosed earlier in July that it anticipates a €400 million fine in connection with raids conducted at its offices in 2022 and 2023. The company operates in over 70 countries across Africa, Asia, Europe, the Middle East, and Latin America. According to its 2023 earnings report, Delivery Hero increased its stake in Glovo to 94.5% in July 2022, valuing the latter at €2.3 billion.

The European Commission’s findings could have significant repercussions for the food delivery sector, potentially leading to substantial fines and enforced changes in business practices for Delivery Hero and Glovo.

Source: Euractiv