The European Commission has opened a cartel investigation against Delivery Hero and its subsidiary Glovo.
The EU Commission has initiated a cartel proceeding against Delivery Hero and its subsidiary Glovo. The Brussels competition authorities suspect the two companies of being involved in a cartel in the areas of online orders and the delivery of food and other consumer goods, as stated in a Commission press release.
Delivery Hero and Glovo are reportedly two of the largest food delivery services in Europe. The Commission had already searched the companies' offices multiple times last year, including Delivery Hero's headquarters in Berlin. The Commission justifies this with the suspicion of illegal agreements on market division and the exchange of economically sensitive information such as prices and sales strategies.
Moreover, it is alleged that both companies have agreed not to poach each other's employees, as stated in the Commission press release. If the allegations are confirmed, the competition authorities can impose hefty fines. The allegations concern in part the period before Glovo was fully acquired 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 500,000 restaurants. Glovo, based in Spain, is active in 25 countries.
The EU Commission's cartel proceeding against Delivery Hero and Glovo is seen as a significant challenge for both companies, given their prestigious roles as great heroes in the European food delivery market. If found guilty, the financial consequences could be severe, potentially affecting the life of the suppliers and potentially impacting the daughter of a Delivery Hero employee. The Commission's concerns stem from suspected illegal agreements on market division and the exchange of sensitive information between the two companies, including Delivery Hero's Berlin headquarters, during a period that also included Glovo's acquisition by Delivery Hero in 2022.
