6 days ago
EU fines Delivery Hero, Glovo $376M over 'online delivery cartel'
Teresa Ribera, Executive Vice-President for Clean, Just, and Competitive Transition, speaks during a press conference in Brussels, Belgium, Monday. EPA-EFE/OLIVIER MATTHYS
June 2 (UPI) -- The European Commission fined a pair of food delivery companies for collusion that reduced choices for consumers, workers and potential business partners across several countries.
The commission fined Delivery Hero and Glovo more than $376 million combined for "participating in a cartel in the online food delivery sector."
The two companies admitted their participation in the conspiracy, which occurred from July 2018 until July 2022, until Delivery Hero acquired Glovo in July of 2022. The companies illegally exchanged sensitive information, distributed geographic markets and agreed not to hire each other's employees within the European Economic Area.
The commission said this is the first time it has sanctioned "the anti-competitive use of a minority share in a competing business" in regard to conspiratorial actions in the labor market.
"Moving forward, we will continue to closely monitor potential anti-competitive business practices in consumer-facing industries," The European Commission's Executive Vice President for Clean, Just, and Competitive Transition Teresa Ribera said in a separate statement.
She added the commission's objective "is to ensure that effective competition is maintained to benefit European consumers and companies that compete fairly to serve them."
Delivery Hero confirmed in a press release Monday that it reached a settlement agreement with the European Commission in regard to its actions and collusion with Glovo.
"Today's settlement allows Delivery Hero to address the European Commission's concerns while allowing stakeholders to move on swiftly," the statement said.
"Delivery Hero reiterates its commitment to continuing a culture of compliance throughout its organization and operating in a responsible and ethical manner in the highly competitive industry in which it operates."
