BERLIN, GERMANY – SEPTEMBER 4: Delivery Hero offices photographed on September 4, 2020 in Berlin, Germany. (Photo by Jeremy Mohler/Getty Images)
Jeremy Mohler | Getty Images Entertainment | Getty Images
BRUSSELS – European Union antitrust regulators launched an investigation on Tuesday into German online food delivery company Delivery Hero and its Spanish subsidiary Glovo, over concerns they may be part of an online food delivery cartel.
Earlier this month, Delivery Hero warned that the European Commission could fine it more than 400 million euros ($435 million) for violating antitrust laws.
The EU investigation follows two dawn raids last year.
Delivery Hero took a minority stake in Glovo in 2018 and took exclusive control in July 2022.
“The Commission is concerned that Delivery Hero and Glovo may have allocated geographical markets and shared commercially sensitive information prior to the acquisition,” the EU regulator said.
The two companies may have agreed not to poach each other’s employees, and these practices may have been facilitated by Delivery Hero’s minority stake in Glovo, the report said.
“Online food delivery is a fast-growing industry and we must protect competition,” EU antitrust chief Margrethe Vestager said in a statement.
Delivery Hero said it is cooperating fully with the commission and is committed to meeting all compliance and regulatory requirements.
The company added that it “remains fully on track to achieve fiscal 2024 guidance and further materially improve profitability in 2025 and beyond.”
Companies that violate EU antitrust regulations will face fines of up to 10% of their global annual turnover.
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