The European Commission fined Delivery Hero and its subsidiary Glovo a total of €329 million on Monday for operating what it said was a “cartel” in Europe’s food-delivery sector.
Brussels said both firms, which which deliver ready-to-eat meals as well as other grocery and retail products, engaged in a range of anti-competitive practices across Europe from 2018 until 2022, when Berlin-based Delivery Hero acquired full control of its Spanish rival.
Such practices included sharing sensitive commercial information, splitting market share, and agreeing not to hire each other’s employees, the Commission said.
Both companies participated “in a cartel in the online food delivery sector”, EU competition chief Teresa Ribera said. She added that the case represents the first time that the Commission has fined companies for agreeing a so-called “no-poach” deal, where they mutually agree not to hire each other’s employees.
Delivery Hero was fined €223 million while Glovo was ordered to pay €106 million.
Brussels said the anti-competitive behaviour began when Delivery Hero acquired a minority stake in Glovo in July 2018. These practices gradually expanded until December 2018, when most forms of cooperation broke down except for the “no-poach” deal.
The decision to split market share and share sensitive information started up again in January 2020 and continued until Delivery Hero acquired full control of Glovo in July 2022.
The case was not initiated by any particular company but rather through whistle-blowers and Brussels’ own monitoring mechanisms, the Commission said.
Brussels did not estimate the practices’ impact on European consumers.
In a statement, Delivery Hero said that it had “fully cooperated” with the Commission throughout the investigation.
It also noted that the total fine was 20% lower than initially anticipated, which it said reflected Brussels’ acknowledgement of “a lower intensity of the issues investigated for some periods.”
“Today’s settlement allows Delivery Hero to address the European Commission’s concerns while allowing stakeholders to move on swiftly,” it added.
The Commission said both companies “admitted their involvement in the cartel and agreed to settle the case”.
The story has been updated with a statement from Delivery Hero.
(jp)
