Commission opens investigation into possible anticompetitive agreements in the online food delivery sector
The European Commission has opened a formal antitrust investigation to assess whether Delivery Hero and Glovo have breached EU competition rules by participating in a cartel in the sector of online ordering and delivery of food, grocery and other daily consumer goods in the European Economic Area (‘EEA’).
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.
The Commission is concerned that, before the takeover, Delivery Hero and Glovo may have allocated geographic markets and shared commercially sensitive information (e.g., on commercial strategies, prices, capacity, costs, product characteristics). The Commission is also concerned that the companies may have agreed not to poach each other’s employees. These practices could have been facilitated by Delivery Hero’s minority share in Glovo.
If proven, the companies’ behaviour may breach EU competition rules that prohibit cartels and restrictive business practices(Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’) and Article 53 of the EEA Agreement). The Commission will now carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Online food delivery is a fast-growing sector, where we must protect competition. This is why we are investigating whether Delivery Hero and Glovo agreed to share markets and not to poach each other’s employees. If confirmed, such conduct may amount to a breach of EU competition rules, with potential negative effects on prices and choice for consumers and on opportunities for workers.”