Cartel languages - The EU Commission has opened an investigation against Delivery Hero
Due to suspicions of a cartel violation, the EU Commission has officially initiated a procedure against food delivery service Delivery Hero. Specifically, the authority suspects that the company may have engaged in anti-competitive practices with another firm, in this case Glovo with its headquarters in Spain. Glovo also earns its money in the food delivery industry.
Already in November, unannounced inspections were carried out at Delivery Hero in Berlin and Barcelona by the authorities. Delivery Hero cooperated fully with the authorities at the time, as reported by the company. The company's headquarters are in Berlin, but Delivery Hero does not operate its own delivery service in Germany.
"Delivery Hero and Glovo are among the largest food delivery services in Europe," the Commission stated. Since July 2018, Delivery Hero has held a minority stake in Glovo and took full control of the company in July 2022. The Brussels authority currently suspects that agreements were made before this takeover.
A fine of more than 400 million euros is possible
Two weeks ago, Delivery Hero announced that a fine of possibly more than 400 million euros could be imposed due to potential violations of EU antitrust law. So far, the Berlin authorities have only recovered 186 million euros for the conflict. Accordingly, Delivery Hero announced a significant increase in the corresponding repayment.
Apart from agreements on sensitive information such as prices, the EU Commission suspects that Delivery Hero and Glovo may have agreed not to poach workers from each other. In addition, the allegation exists that the two companies may have divided markets among themselves. The Commission emphasizes that it has not yet reached a definitive conclusion as to whether the two companies have broken EU rules.
- The official investigation into Delivery Hero, initiated by the European Commission in Berlin, involves suspicions of anti-competitive practices with Glovo in the food delivery industry.
- Despite having its headquarters in Berlin, Delivery Hero does not operate its own delivery service in Germany.
- The European Commission, based in Brussels, also has concerns about potential agreements made between Delivery Hero and Glovo, specifically before Delivery Hero's full takeover of Glovo in July 2022.
- The cartel violation allegations against Delivery Hero could result in a fine of over 400 million euros, as announced by the company two weeks ago.
- Apart from potentially sharing sensitive information, such as prices, the European Commission is investigating if Delivery Hero and Glovo agreed not to poach workers from each other and if they divided markets among themselves.
- As two of the largest food delivery services in Europe, Delivery Hero and Glovo have significant operations in various European countries, including Spain.
- The investigation into Delivery Hero's activities in the European Union underscores the importance of complying with EU antitrust laws in the competitive food delivery market.
