The European Commission has fined Delivery Hero and Glovo, two major food delivery companies, a total of €329 million for participating in a cartel in the online food delivery sector.
According to the Commission, the two companies teamed up by signing an agreement not to poach each other’s employees, exchanged commercially sensitive information, and allocated geographic markets.
“The infringement covered the European Economic Area (‘EEA’) and lasted four years. Cartels like this reduce choice for consumers and business partners, reduce opportunities for employees, and reduce incentives to compete and innovate,” the Commission stated.
The Commission, in a statement released on Monday, said both companies admitted their involvement in the cartel and agreed to settle the case.
The infringement
Delivery Hero and Glovo are two of the largest food delivery companies in Europe. They deliver food (prepared by a restaurant or a professional kitchen), groceries, and other retail (non-food) products to customers ordering from an app or a website.
- In July 2018, Delivery Hero acquired a minority non-controlling stake in Glovo and progressively increased this stake through subsequent investments.
- In July 2022, Delivery Hero acquired sole control of Glovo.
- The Commission has found that, from July 2018 until July 2022, Delivery Hero and Glovo progressively removed competitive constraints between the two companies and replaced competition with multi-layered anticompetitive coordination.
“In particular, the two companies agreed: Not to poach each other’s employees. The shareholders’ agreement signed at the time Delivery Hero acquired a minority non-controlling stake in Glovo included limited reciprocal no-hire clauses for certain employees. Shortly thereafter, this arrangement was expanded to a general agreement not to actively approach each other’s employees.
“To exchange commercially sensitive information. Exchanging commercially sensitive information (e.g., on commercial strategies, prices, capacity, costs, and product characteristics) enabled the companies to align and influence their respective market conduct.
“To allocate geographic markets. In particular, the two companies agreed to divide among themselves the national markets for online food delivery in the EEA, by removing all existing geographic overlaps between them, by avoiding entry into their respective national markets, and by coordinating which of them should enter in markets where neither was present yet,” the EU Commission stated.
The fines
According to the Commission, the fines imposed on both companies were set on the basis of its 2006 Guidelines on fines.
The Commission said it considered various elements, including the multifaceted nature of the cartel, the fact that it covered the entire EEA, its overall duration, and the cartel’s evolution over time, with periods of lesser cartel intensity.
In addition, the Commission applied a standard reduction of 10% to the fines, in line with the Commission’s 2008 Settlement Notice, as both companies acknowledged their participation in the cartel and their liability.
The breakdown of the fines imposed on each party is as follows:
- Delivery Hero SE:€223 285 000
- Glovoapp23 SA: €105 732 000
What you should know
Glovo is one of the leading online food delivery platforms in Nigeria. Last month, Nairametrics reported that Glovo had facilitated over N71 billion in revenue for Nigerian partners since its launch in 2021.
- The platform now serves 11 cities across Nigeria and has onboarded more than 6,000 restaurants and retail outlets that have processed orders, supported by a network of over 2,400 active delivery riders.
- In 2024, Glovo reported a 76% increase in gross merchandise value (GMV), with cash transactions falling from 88% in 2021 to 39%, a sign of growing preference for digital payments.
