Glovo Faces Antitrust Allegations in Morocco's Food Delivery Market
Doha – The Competition Council of Morocco has officially notified GlovoApp Morocco of several grievances regarding alleged anticompetitive practices in the digital food ordering and delivery platform market.
The notification follows an investigation initiated by the Council's self-referral decision number 20/D/2024 dated February 19, 2024.
The investigation stems from a surprise inspection of Glovo's Casablanca offices on October 22, 2024. This operation was authorized by the King's Prosecutor and conducted with support from the National Judicial Police Brigade.
According to the Council's Rapporteur General, the investigation revealed evidence of anticompetitive practices by Glovo. The company is accused of abusing its dominant market position, exploiting the economic dependency of its commercial partners, and implementing unfairly low pricing strategies.
The notification opens a contradictory procedure phase that guarantees Glovo's defense rights. The constitutional institution, headed by Ahmed Rahhou, clarified that this notification does not prejudge the final decision, which can only be determined by the Council's board.
Glovo, a Spanish-origin delivery platform, quickly responded to the allegations in a statement released Thursday. The company acknowledged receiving the notification while stressing that it 'does not prejudge the Council's final decision.'
Read also: Glovo Maroc Sees 40% Surge in Summer Deliveries
The food delivery platform stated it 'fully respects the ongoing procedure, as governed by current regulations.' Glovo reaffirmed 'its deep commitment to Morocco' and its desire to 'maintain the best relationships with its entire ecosystem — partners, delivery drivers, and customers — and Moroccan authorities.'
'We remain committed to respecting fair competition rules, transparency, innovation, and service quality to contribute to the development of our sector, which is in constant technological evolution, in a win-win dynamic,' Glovo concluded in its statement.
Since establishing operations in Morocco, Glovo has transformed the local home delivery landscape. Morocco represents the company's fourth-largest market globally. The platform currently works with more than 6,500 business partners and 4,500 couriers throughout the kingdom.
Article 7 of Law No. 104-12 on freedom of prices and competition prohibits behaviors that aim to 'prevent, restrict or distort competition.' The law specifically forbids imposing 'unjustified commercial conditions' or 'minimum resale prices.'
According to the Competition Council, such practices risk harming offer diversity, innovation, and consumer rights. The final decision will be made by the Council's board after conducting a contradictory investigation respecting the defense rights of the concerned party and following a Council session.
The board alone will determine whether the alleged grievances are well-founded. This regulatory action aims to preserve the competitive balance of the market in the interest of consumers and proper economic functioning. Tags: Council of competitionFood DeliveryGlovo in Morocco
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