Delivery Hero and Glovo face hefty fines for delivery cartel

In the European Union, a significant sanction was imposed by the European Commission against two major food delivery companies, Delivery Hero and Glovo, for their involvement in an illegal cartel. This activity occurred from July 2018 until July 2022, during which the companies colluded to reduce competition in the online food delivery market. Their practices included sharing sensitive information, dividing geographic markets, and mutually agreeing not to hire each other's employees across the European Economic Area. Such actions severely limited choices for consumers, workers, and potential business partners. The fine imposed, amounting to over $376 million combined, marks a notable development in regulatory enforcement against anti-competitive practices within the industry. The commission's decision is unprecedented as it targets the anti-competitive use of minority shares in competing businesses within labor market conspiracies. The facts indicate that both Delivery Hero and Glovo were aware of their unlawful coordination. This cooperation came to a halt in July 2022 when Delivery Hero acquired Glovo. This acquisition raised additional concerns, leading to regulatory scrutiny since the two companies were engaged in ongoing anti-competitive actions prior to the consolidation. The European Commission highlighted its commitment to monitoring and enforcing effective competition, stressing the importance of maintaining fairness in consumer-facing industries. As confirmed by a press release, Delivery Hero acknowledged its involvement and reached a settlement agreement with the European Commission. The company expressed its intention to comply with regulatory requirements and emphasized its commitment to fostering a culture of compliance and ethical conduct within its operations. This settlement is aimed at addressing the commission's concerns while allowing the involved parties to move forward without prolonged disputes. In her statement, Teresa Ribera, the European Commission's Executive Vice President for Clean, Just, and Competitive Transition, remarked on the importance of maintaining effective competition to benefit consumers and ensure fair practices in competitive markets. The implications of this case could set a precedent for future enforcement actions against similar collusive behavior in various industries, showcasing the commission's resolve to tackle anti-competitive practices that undermine market integrity and consumer choice.