EU Slaps Heavy Fines on Delivery Hero and Glovo for Cartel Activities

The European Commission has imposed substantial fines on food delivery giants Delivery Hero and Glovo for engaging in anti-competitive practices. Delivery Hero has been fined 223 million euros, while Glovo faces a 106 million euro penalty. These penalties arise from the companies forming an illegal cartel by making agreements on prices, market strategies, and the non-recruitment of each other's employees.

The Commission discovered that these agreements were facilitated through email and WhatsApp communications before Delivery Hero's acquisition of Glovo in July 2022. This illegal collaboration not only violated EU competition laws but also hindered fair market practices and affected the market dynamics.

The case marks a significant move by the EU, as it is the first time fines have been imposed for employee non-poaching agreements. Such actions are seen as attempts to maintain a fair labor market and ensure competitive practices.

Despite the hefty fines, Delivery Hero had anticipated a larger penalty and had previously set aside 186 million euros in anticipation. Both companies acknowledged the allegations and cooperated with the investigation, indicating their willingness to rectify their past actions.

This case underscores the EU's commitment to maintaining fair competition and highlights the significant consequences companies face when engaging in anti-competitive behavior. It also brings attention to the importance of ethical business practices in maintaining a balanced and fair market landscape.