The European Commission has imposed fines totalling €329m ($375m) on Germany-based Delivery Hero and Spanish company Glovo for engaging in anti-competitive practices within the European Economic Area (EEA).

The decision marks the first instance of the commission penalising a cartel in the labour market. The fines reflect misuse of a minority shareholding to facilitate anti-competitive coordination.

Delivery Hero and Glovo, Europe's two leading food delivery companies, are known for delivering restaurant-prepared meals, groceries and retail products. Both were found to have violated antitrust laws over a four-year period.

In July 2024, the EU Commission began an investigation into the two companies for potential antitrust violations.

The commission's investigation revealed that Delivery Hero and Glovo had agreements in place to avoid poaching each other's employees, to exchange commercially sensitive information, and to divide geographic markets between themselves.

This collusion reduced consumer choice, limited employment opportunities and stifled the incentive to compete and innovate.

Both companies admitted their involvement and agreed to settle, with Delivery Hero fined €223.285m and Glovo €105.732m.

The fines were calculated based on the commission's 2006 guidelines on fines, taking into account the cartel's nature, geographic scope, duration and evolution.

From July 2018, when Delivery Hero acquired a minority stake in Glovo, until July 2022 when it took sole control, the companies' competitive constraints were progressively eliminated.

They entered into a non-poaching agreement, shared sensitive information and allocated markets to avoid competition, facilitated by Delivery Hero's stake in Glovo.

The fines reflect the seriousness of the infringement, with a standard 10% reduction applied due to the companies' admission of liability, in accordance with the Commission's 2008 Settlement Notice.

"Delivery Hero and Glovo fined $375m for anti-competitive practices in EEA" was originally created and published by Verdict Food Service, a GlobalData owned brand.

 

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