Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC fines food delivery companies €329 ($375) million for cartel participation, (Jun 2, 2025)
Organizations Mentioned:Delivery Hero | Glovo
By Peter Reap, J.D., LL.M.
The case is the first EC finding of a cartel in the labor market and first sanction on the anti-competitive use of a minority share in a competing business.
The European Commission (EC) has fined food delivery companies Delivery Hero and Glovo a combined €329 ($375) million for cartel participation, the antitrust enforcer announced. Delivery Hero and Glovo, two of the major companies in the online food delivery sector, admitted their involvement in the cartel and agreed to settle the case. The EC found that the two companies (i) agreed not to poach each other's employees; (ii) exchanged commercially sensitive information; and (iii) allocated geographic markets. This is the first decision where the EC determined the existence of a cartel in the labor market and the first time it sanctioned the anti-competitive use of a minority share in a competing business.
The infringement covered the European Economic Area (EEA) and lasted four years, the EC found. Cartels like this reduce choice for consumers and business partners, reduce opportunities for employees and reduce incentives to compete and innovate.
Company backgrounds and announcement of investigation. Delivery Hero, headquartered in Germany, is a company active in the food ordering and delivery business in more than 70 countries worldwide and partners with more than 500,000 restaurants. Glovo, headquartered in Spain, is also a food ordering and delivery business. It is currently present in more than 1,300 cities in 25 countries across the globe. In July 2022, Delivery Hero acquired the majority of shares in Glovo, and Glovo became Delivery Hero's subsidiary. Delivery Hero and Glovo are two of the largest food delivery companies in Europe. From July 2018, Delivery Hero held a minority share in Glovo, and in July 2022 it acquired its sole control.
In July 2024 the EC announced that it was investigating whether the two companies were participating in a cartel in the sector of online ordering and delivery of food, grocery, and other daily consumer goods. In light of concerns over hiring practices, market allocations, and information sharing, the EC raided Delivery Hero and Glovo in unannounced early-morning raids in June 2022 and November 2023.
The violation found. The EC found that, from July 2018 until July 2022, Delivery Hero and Glovo progressively removed competitive constraints between the two companies and replaced competition with multi-layered anticompetitive coordination. In particular, the two companies agreed:
Not to poach each other's employees. The shareholders' agreement signed at the time Delivery Hero acquired a minority non-controlling stake in Glovo included limited reciprocal no-hire clauses for certain employees. Shortly thereafter this arrangement was expanded to a general agreement not to actively approach each other's employees.
To exchange commercially sensitive information. Exchanging commercially sensitive information (e.g., on commercial strategies, prices, capacity, costs and product characteristics) enabled the companies to align and influence their respective market conduct.
To allocate geographic markets. In particular, the two companies agreed to divide among themselves the national markets for online food delivery in the EEA, by removing all existing geographic overlaps between them, by avoiding entry into their respective national markets, and by coordinating which of them should enter in markets where neither was present yet.
These practices were facilitated by Delivery Hero's minority shareholding in Glovo, according to the EC. Owning a stake in a competitor is not in itself illegal, but in this specific case it enabled anti-competitive contacts between the two rival companies at several levels. It also allowed Delivery Hero to obtain access to commercially sensitive information and to influence decision-making processes in Glovo, and ultimately to align the two companies' respective business strategies. This shows that horizontal cross-ownership between competitors may raise antitrust risks and should be handled carefully. The three anti-competitive practices above constitute a single and continuous infringement, covering the EEA and amounting to an infringement by object under Article 101 of the Treaty on the Functioning of the European Union (‘TFEU') and Article 53 of the EEA Agreement, the EC determined.
Fines. The fines imposed on both companies were set on the basis of the Commission's 2006 Guidelines on fines. In setting the fines, the Commission considered various elements, including the multifaceted nature of the cartel, the fact that it covered the entire EEA, its overall duration, and the cartel's evolution over time, with periods of lesser cartel intensity. In addition, the Commission applied a standard reduction of 10% to the fines, in line with the Commission's 2008 Settlement Notice, as both companies acknowledged their participation in the cartel and their liability. Delivery Hero was assessed a fine of over €223 million and Glovo over €105 million.
Ribera quote. Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said: “This case is important because these practices were facilitated through an anticompetitive use of Delivery Hero’s minority stake in Glovo. It is also the first time the Commission is sanctioning a no-poach agreement, where companies stop competing for the best talent and reduce opportunities for workers.”
Companies: Delivery Hero; Glovo
News: Antitrust AcquisitionsMergers