The European Commission has opened a formal antitrust investigation to assess whether Delivery Hero and Glovo violated EU competition rules by participating in a cartel in the online ordering and delivery of food and groceries, as well as other everyday consumer goods in the European Economic Area (EEA). The European Union executive recalled that Delivery Hero and Glovo are two of the largest food delivery companies in Europe and that, since July 2018, Delivery Hero had a minority stake in Glovo. Subsequently, in July 2022, it acquired sole control of it.
Brussels is concerned that, prior to the acquisition, Delivery Hero and Glovo may have allocated geographic markets and shared commercially sensitive information (e.g. on business strategies, prices, capacities, costs, product features). Antitrust experts also fear that the companies may have agreed not to poach each other’s employees. These practices could have been facilitated by Delivery Hero’s minority stake in Glovo. If proven, the companies’ behavior could violate EU competition rules prohibiting cartels and restrictive business practices. The European Commission will now carry out its in-depth investigation as a matter of priority.
