The European Commission has fined food delivery companies Delivery Hero and Glovo €329 million for violating EU competition rules by forming a cartel. The announcement was made by EU Commission Vice-President Teresa Ribera in Brussels.
The companies are accused of agreeing to not recruit each other’s employees, exchanging sensitive commercial information, and dividing geographical markets. The Commission stated that this conduct distorted competition within the market. Both Delivery Hero and Glovo have acknowledged their participation in the cartel.
According to the Commission, the illegal cooperation took place between July 2018 and July 2022. The companies allegedly divided national markets within the European Economic Area (EEA) and coordinated strategies for market acquisitions. They also shared data related to pricing, company strategy, capacity, and expenses.
The EU Commission highlights this case as an example of how ownership stakes in competing companies can, in certain instances, lead to a distortion of competition. Delivery Hero’s minority share in Glovo facilitated the illegal agreements.
This marks the first instance where the Commission has imposed a fine for companies colluding on employee recruitment practices, making it a noteworthy case. Delivery Hero, which previously operated in Denmark under the brand Foodora, ceased its operations in the country in June 2024.