The European Union initiated an investigation on Tuesday to ascertain if online food delivery giants Delivery Hero and Glovo were involved in anti-competitive behaviors. This investigation follows unannounced inspections conducted at both companies, which rank among the top food delivery services in Europe, in June 2022 and November 2023. Since July 2018, Delivery Hero, headquartered in Germany, has held a minority stake in Glovo, which it fully acquired in July 2022. The European Commission expressed concerns that prior to the acquisition, the companies might have divided geographic markets and exchanged commercially sensitive information such as strategies, prices, capacities, costs, and product features. Delivery Hero's initial minority stake could have facilitated these practices.
Earlier this month, Delivery Hero cautioned that it could face a fine exceeding 400 million euros ($434 million) for potential antitrust violations. Both Delivery Hero and Glovo issued separate statements affirming their full cooperation with the EU and their commitment to fulfilling all compliance and regulatory obligations. Delivery Hero clarified that the initiation of an investigation does not imply that the European Commission has reached a conclusion regarding any potential breach of competition law.
The commission noted that this investigation is part of its broader efforts to guarantee that the online food delivery and grocery sectors provide consumers with choices and reasonable prices. The EU also suspects that the companies may have agreed not to recruit each other's employees, marking this probe as the first formal investigation into 'no-poach agreements' by the Commission. The investigation aims to uphold a fair labor market where employers compete for talent rather than colluding to restrict job opportunities for workers.
The commencement of an investigation does not predetermine its results, and there is no set deadline for its completion. If found guilty, the companies could face fines up to 10 percent of their global annual revenue. EU antitrust chief Margrethe Vestager emphasized the importance of protecting competition in the rapidly growing online food delivery sector. She noted that such conduct, if confirmed, could violate EU competition rules, potentially impacting prices, consumer choices, and job opportunities for workers.
Delivery Hero, traded on the Frankfurt Stock Exchange, operates in over 70 countries, while Glovo is active in 25 nations.
