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Glovo Faces Antitrust Allegations in Morocco's Food Delivery Market
Glovo Faces Antitrust Allegations in Morocco's Food Delivery Market

Morocco World

time3 days ago

  • Business
  • Morocco World

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

Moroccan competition council probes 20-year sardine market collusion
Moroccan competition council probes 20-year sardine market collusion

Ya Biladi

time09-05-2025

  • Business
  • Ya Biladi

Moroccan competition council probes 20-year sardine market collusion

The Competition Council announced on Thursday the launch of an investigation to determine the existence of alleged anti-competitive practices in the industrial sardine supply market. «As part of its duties and responsibilities defined by the Constitution, Law No. 20-13 relating to the Competition Council, and Law No. 104-12 on freedom of prices and competition — as amended and supplemented — aimed at regulating market competition and protecting consumer interests, the Competition Council has initiated an investigation into potential anti-competitive practices in the industrial sardine supply market», stated a communiqué from the Council's general rapporteur. Investigative actions carried out by the Council's instruction and inquiry services have gathered sufficient evidence suggesting the existence of anti-competitive agreements among several actors in the industrial sardine supply chain. These agreements reportedly aimed to restrict competition in the sector over a 20-year period. Specifically, they involved the concerted fixing of first-sale prices of industrial sardines — undermining free market pricing by artificially inflating or deflating prices — and the coordinated allocation and limitation of production, restricting market access and the free exercise of competition by other players. Accordingly, the general rapporteur of the Competition Council stated that, in line with Article 29 of Law No. 104-12, grievances have been formally notified to 15 professional organizations allegedly involved in these practices. These organizations include shipowners, processing units engaged in the industrial transformation of fish, and wholesalers purchasing seafood products at first sale for market distribution.

Competition Council Probes Alleged Anti-Competitive Practices in Sardine Supply Market
Competition Council Probes Alleged Anti-Competitive Practices in Sardine Supply Market

Morocco World

time08-05-2025

  • Business
  • Morocco World

Competition Council Probes Alleged Anti-Competitive Practices in Sardine Supply Market

Rabat – The Moroccan Competition Council announced on Thursday launching a formal investigation into alleged anti-competitive practices in the market for industrial sardine supply, following the detection of serious irregularities affecting fair competition. In a press release issued by the Council's Rapporteur General, the authority stated that it had acted on its own initiative, invoking powers granted by the Moroccan Constitution, Law No. 20-13 on the Council of Competition, and Law No. 104-12 on the freedom of pricing and competition. The Council's role includes ensuring market regulation and safeguarding consumer interests. The Council says its investigation has gathered substantial evidence suggesting the existence of collusive agreements among several players in the industrial sardine supply chain. These agreements, which may have spanned two decades, allegedly aimed to restrict market competition by manipulating prices and limiting production access. The alleged violations involve concerted price-fixing for the initial sale of industrial sardines , which distorted market-driven pricing and led to artificial price fluctuations. Additionally, agreements to restrict or divide production limited access for new competitors and undermined fair competition. As part of its procedures under Article 29 of Law No. 104-12, the Council has formally issued statements of objections to 15 professional organizations believed to be involved. These include shipowners, fish processing and value-addition units, as well as wholesalers active in the initial purchase of marine products. The notification of grievances marks the beginning of a contradictory procedure, allowing the accused parties to exercise their right to defense. The Council emphasized that the issuance of these statements does not constitute a final decision. Only the Council's governing body is authorized to rule on the validity of the charges, after a full review and a public hearing. In February, Morocco's social media was abuzz with controversy over soaring fish prices in local markets. The debate was sparked by a young man from Marrakech, Abdolilah, popularly known as Abdo, who launched an initiative to sell sardines at just MAD 5 ($0.50) per kilogram. His action stood in stark contrast to the prevailing prices in coastal cities such as Rabat, Casablanca, and Agadir, where sardines were commonly sold for MAD 25 ($2.50) or more per kilo, despite their proximity to fishing zones. Tags: competition councilMoroccan sardinesprices regulationSardines

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