The European Commission has issued a decision against Delivery Hero and Glovo, finding them guilty of breaching EU competition laws by participating in a cartel within the online food delivery sector. The companies have been fined a total of EUR 329 million.
Both Delivery Hero and Glovo admitted their involvement in the cartel and agreed to settle the case. This marks the first instance where the Commission has penalized companies for a “no-poach agreement,” which involves firms agreeing not to hire or solicit each other’s employees.
“This is also the first decision that shows how companies can misuse a small stake in a rival company for anti-competitive reasons,” stated Executive Vice-President Ribera. She emphasized that competition rules are crucial as they impact citizens’ daily lives, from meal orders on apps to online grocery shopping.
The investigation revealed that Delivery Hero acquired a minority stake in Glovo in July 2018, which eventually led to Glovo becoming its subsidiary by July 2022. This relationship allowed both companies to coordinate operations and strategies, exchanging commercially sensitive information beyond what was necessary for financial investment protection.
The Commission identified three illegal practices under Article 101 of the Treaty: no-poach agreements, exchanges of commercially sensitive information, and market division within the European Economic Area (EEA). These actions collectively formed a single continuous infringement lasting four years.
No-poach agreements restricted competition for labor, suppressing wages and reducing mobility. The exchange of sensitive information enabled both companies to align their market conduct instead of competing. Additionally, they divided national markets within the EEA through shareholder influence.
Delivery Hero faces fines amounting to approximately EUR 223 million while Glovo’s penalties stand at EUR 106 million. Both entities settled by admitting their infractions and waiving certain procedural rights, resulting in reduced fines by 10%.
“Today’s decision shows our determination to taking actions against all forms of cartels,” Ribera noted. The Commission aims to maintain effective competition benefiting European consumers and fair-competing businesses.
###
