European Union antitrust regulators have launched an investigation into the German food delivery company Delivery Hero and its Spanish unit, Glovo. This inquiry stems from suspicions that the two firms may have been involved in an online food delivery cartel.
Earlier this month, Delivery Hero warned that the European Commission could impose a fine exceeding 400 million euros (approximately 435 million dollars) for potential violations of antitrust laws. The investigation follows two raids carried out last year as part of these inquiries.
Delivery Hero held a minority stake in Glovo back in 2018 and gained full control of the company in July 2022. The European Commission has expressed concerns that, prior to this acquisition, Delivery Hero and Glovo might have divided geographical markets and exchanged sensitive commercial information.
The Commission suggested that the two companies may have agreed not to poach each other’s employees, a practice that could have been facilitated by Delivery Hero’s minority stake in Glovo. Margrethe Vestager, the EU’s competition chief, stated, "Online food delivery is a rapidly growing sector, and we must protect competition within it."
Firms found guilty of violating EU antitrust laws face fines of up to 10% of their annual global turnover. This investigation highlights the ongoing scrutiny the tech and food delivery sectors are facing as regulators seek to ensure fair competition.
(1 U.S. dollar = 0.9200 euros)
For more detailed coverage on this topic, visit Reuters.
This developing situation reflects the increasing focus on competition in the rapidly evolving food delivery market.
Image and News Source: https://es-us.finanzas.yahoo.com/noticias/ue-abre-investigaci%C3%B3n-c%C3%A1rtel-delivery-102736005.html
