The European Commission has opened a cartel investigation against Delivery Hero and its subsidiary Glovo.
Delivery Hero and Glovo, according to reports, are two of the largest food delivery services in Europe. The Commission reportedly searched the offices of both companies multiple times last year, including Delivery Hero's headquarters in Berlin. The Commission justifies this with suspicions of illegal price-fixing agreements and the exchange of economically sensitive information such as prices and sales strategies.
Moreover, it is alleged that both companies agreed not to poach each other's employees, as stated in the Commission's declaration. If the allegations are confirmed, the competition authorities could impose hefty fines. The allegations concern, in part, the period before Glovo's full acquisition by Delivery Hero in July 2022.
Delivery Hero has been listed on the Frankfurt Stock Exchange since 2017 in the MDAX index. According to its own statements, the company is represented worldwide in more than 70 countries and works with over 500,000 restaurants. Glovo, based in Spain, is active in 25 countries.
- The European Commission initiated cartel procedures against Delivery Hero and Glovo due to suspicions of illegal price-fixing agreements and information exchange in Berlin last year.
- Amidst these allegations, Delivery Hero, the European food delivery giant listed on the Frankfurt Stock Exchange, could face hefty fines if proved guilty of agreeing not to poach each other's employees.
- Despite these investigations, Delivery Hero, the hero of the European food delivery market, continues its operations, serving over 500,000 restaurants in more than 70 countries worldwide.
- In response to these antitrust investigations, Glovo, a Spanish delivery service active in 25 countries, emphasized its commitment to fair competition and transparency in Berlin.
