The European Commission has imposed a fine of 329 million euros on food delivery services Delivery Hero and Glovo for breaching antitrust rules. The fine, announced on Monday, follows an investigation that found the two companies participated in a cartel in the online food delivery sector.
According to the EU Commission, the companies agreed not to poach each other’s employees, exchanged economically sensitive information and divided up geographic markets. Both companies have admitted to their involvement in the cartel and have agreed to settle the case.
Delivery Hero and Glovo are two of the largest food delivery services in Europe. In July 2018, Delivery Hero acquired a minority stake in Glovo, which it later expanded through further investments. By July 2022, Delivery Hero had gained full control of Glovo.
“This case is significant because these practices were made possible by the anticompetitive use of Delivery Hero’s minority stake in Glovo” said EU Commissioner Teresa Ribera. “It is also the first time the Commission has sanctioned an agreement not to poach employees, which hinders the competition for the best talents and restricts the chances for employees.