Latest news with #cartel
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
EU hits Delivery Hero with €329mil fine
Delivery Hero provides its services in more than 70 countries worldwide. (EPA Images pic) BRUSSELS : The EU today slapped German food delivery company Delivery Hero and its Spanish subsidiary Glovo with a fine worth €329 million after they violated antitrust rules. EU regulators concluded Delivery Hero used its stake in Glovo between 2018 and 2022 to limit competition by exchanging sensitive information, agreeing not to poach each other's employees, and to divide among themselves national markets for food delivery. Based in Germany, Delivery Hero has held a 94% stake in Spain's Glovo since July 2022, but the EU's formal probe – launched last year – focuses on the period before it took sole control. They are two of the biggest food delivery companies in Europe, delivering meals from restaurants, grocery shopping and other non-food products to customers at home ordering via their apps or websites. The European Commission, which acts as the EU's competition watchdog, said the two companies admitted their involvement in the cartel and agreed to pay the fines to settle the case. 'Cartels like this reduce choice for consumers and business partners, reduce opportunities for employees and reduce incentives to compete and innovate,' it said. Delivery Hero will have to pay a fine worth €223 million, while Glovo must pay around €106 million, the commission said. 'This case is important because these practices were facilitated through an anticompetitive use of Delivery Hero's minority stake in Glovo,' EU competition chief Teresa Ribera said in a statement. The two companies had agreed not to actively steal each other's employees, initially covering managers before it was extended to all staff including logistics experts. Their agreement did not cover delivery drivers who were not employees at the time of the infringements, but classified as self-employed. The EU's decision is the first where the commission finds a cartel in the labour market and Ribera said it was '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'. Cartel by WhatsApp The two companies exchanged commercially sensitive information regarding prices and costs via email as well as WhatsApp chats where, for example, officials would discuss which markets to enter. The commission said Delivery Hero and Glovo agreed to avoid entering countries where one company was already present, and coordinated which one should enter in markets where neither had a presence yet. As of July 2020, the two companies had fully ceased to compete with each other by carefully avoiding being present in the same markets, reducing consumer choice and thus contributing to higher prices. Delivery Hero confirmed it had reached a settlement agreement with the commission in the antitrust probe, saying it had already set aside a provision for the fine. 'Today's settlement allows Delivery Hero to address the European Commission's concerns while allowing stakeholders to move on swiftly,' it said in a statement. Delivery Hero provides its services in more than 70 countries worldwide, including 16 from the European economic area (EEA) including the EU's 27 states as well as Iceland, Liechtenstein, and Norway. Glovo, now Delivery Hero's subsidiary, is present in over 20 countries worldwide, including eight in the EEA.
Reuters
a day ago
- Business
- Reuters
Delivery Hero, Glovo hit with $376 mln EU antitrust fine
BRUSSELS, June 2 (Reuters) - German online food takeaway company Delivery Hero ( opens new tab and its Spanish unit Glovo were fined 329 million euros ($376 million) for taking part in a cartel which included an agreement not to poach each other's employees, EU regulators said on Monday. The move came after a year-long investigation by the European Commission prompted by two dawn raids in 2023. The EU competition enforcer said the cartel operated from July 2018 to July 2022, the same period as Delivery Hero increased its minority stake in Glovo to 94% in July 2022. The companies admitted wrongdoing in exchange for a 10% cut in their fines. "This case is important because these practices were facilitated through an anticompetitive use of Delivery Hero's minority stake in Glovo," EU antitrust chief Teresa Ribera said in a statement. "It is also the first time the Commission is sanctioning no-poach agreements, where companies stop competing for the best talent and reduce opportunities for workers," she said. Regulators said a shareholder's agreement between the two companies signed when Delivery Hero took a minority stake in Glovo contained limited reciprocal no-hire clauses for certain employees which was then expanded to a general no-poach deal. The companies also exchanged information on prices, commercial strategies, capacity, costs and divided national markets in Europe among themselves. Delivery Hero's fine was 223 million euros and Glovo 105.7 million euros. The total fine is about 20% less than the more than 400 million euro provision set aside by Delivery Hero last year. The company said this was due to the Commission acknowledging "a lower intensity of the issues investigated for some periods." "The remaining provision will be released and normalized through management adjustments without impacting the company's Adjusted EBITDA for the period," Delivery Hero said in a statement, referring to earnings before interest, taxes, depreciation and amortisation. Delivery Hero is present in more than 70 countries worldwide, including 16 in Europe, while Glovo is active in more than 20 countries globally, including 8 in Europe. ($1 = 0.8754 euros)
Malay Mail
2 days ago
- Business
- Malay Mail
Delivery Hero, Glovo admit to cartel via WhatsApp as EU issues record €329m fine over market rigging
BRUSSELS, June 2 — The EU on Monday slapped German food delivery company Delivery Hero and its Spanish subsidiary Glovo with a fine worth 329 million euros (US$376 million) after they violated antitrust rules. EU regulators concluded Delivery Hero used its stake in Glovo between 2018 and 2022 to limit competition by exchanging sensitive information, agreeing not to poach each other's employees, and to divide among themselves national markets for food delivery. Based in Germany, Delivery Hero has held a 94 percent stake in Spain's Glovo since July 2022, but the EU's formal probe – launched last year – focuses on the period before it took sole control. They are two of the biggest food delivery companies in Europe, delivering meals from restaurants, grocery shopping and other non-food products to customers at home ordering via their apps or websites. The European Commission, which acts as the EU's competition watchdog, said the two companies admitted their involvement in the cartel and agreed to pay the fines to settle the case. 'Cartels like this reduce choice for consumers and business partners, reduce opportunities for employees and reduce incentives to compete and innovate,' it said. Delivery Hero will have to pay a fine worth 223 million euros, while Glovo must pay around 106 million euros, the commission said. 'This case is important because these practices were facilitated through an anticompetitive use of Delivery Hero's minority stake in Glovo,' EU competition chief Teresa Ribera said in a statement. The two companies had agreed not to actively steal each other's employees, initially covering managers before it was extended to all staff including logistics experts. Their agreement did not cover delivery drivers who were not employees at the time of the infringements, but classified as self-employed. The EU's decision is the first where the commission finds a cartel in the labour market and Ribera said it was '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'. Cartel by WhatsApp The two companies exchanged commercially sensitive information regarding prices and costs via email as well as WhatsApp chats where, for example, officials would discuss which markets to enter. The commission said Delivery Hero and Glovo agreed to avoid entering countries where one company was already present, and coordinated which one should enter in markets where neither had a presence yet. As of July 2020, the two companies had fully ceased to compete with each other by carefully avoiding being present in the same markets, reducing consumer choice and thus contributing to higher prices. Delivery Hero confirmed it had reached a settlement agreement with the commission in the antitrust probe, saying it had already set aside a provision for the fine. 'Today's settlement allows Delivery Hero to address the European Commission's concerns while allowing stakeholders to move on swiftly,' it said in a statement. Delivery Hero provides its services in more than 70 countries worldwide including 16 from the European Economic area (EEA) including the EU's 27 states as well as Iceland, Liechtenstein, and Norway. Glovo, now Delivery Hero's subsidiary, is present in over 20 countries worldwide, including eight in the EEA. — AFP
Fox News
4 days ago
- Business
- Fox News
Two Utah men charged with supporting Mexican cartel designated as terrorist group
Two family members were charged with conspiring to support a Mexican cartel designated as a terrorist organization. Maxwell Sterling Jensen, 25, and James Lael Jensen, 68, both from Sandy, Utah, were charged with conspiring to materially support a Mexican cartel designated as a terrorist organization and conspiracy to commit money laundering, as well as related smuggling charges. According to the Department of Justice (DOJ), the pair allegedly provided material support to the Jalisco New Generation cartel. The men allegedly conspired to conceal and disguise the source of proceeds from illegally smuggled crude oil, in addition to aiding and abetting the fraudulent entry of 2,881 shipments of oil. The DOJ said they allegedly operated an enterprise in Rio Hondo, Texas, named Arroyo Terminals. When the men were arrested, authorities seized four tank barges that contained crude oil, as well as three commercial tanker trucks, one personal vehicle and an Arroyo Terminal pickup. The Jalisco cartel was designated as a foreign terrorist organization on Feb. 20 by the State Department. Prosecutors said they intend to seek a $300 million judgment if the men are convicted. If found guilty, the men could face over 20 years in prison. William Kimbell, acting special agent in charge of the Drug Enforcement Administration in Houston, said their arrests came from an investigation initially looking into drug trafficking. "What began as a Drug Enforcement Administration (DEA) drug trafficking investigation evolved into a multifaceted case involving an alleged complex criminal operation generating millions of dollars from crude oil — the largest funding source for Mexican drug cartels," Kimbell said. "Given the charges have profound implications for both the United States and Mexico, we will continue to explore all leads and identify any believed to be involved. The collaboration with federal law enforcement, prosecutors and state agencies proved critical to unraveling these alleged crimes and will continue until such operations are destroyed." Fox News Digital reached out to attorneys representing Maxwell Jensen and James Jensen for comment.
Bloomberg
6 days ago
- Business
- Bloomberg
OPEC+ Prepares Third Dose of Oil Shock Therapy
Welcome to our guide to the commodities markets powering the global economy. Today, OPEC reporter Grant Smith looks at the cartel's oil production strategy ahead of a virtual meeting at the weekend. OPEC+ looks set to push more oil onto a fragile global market for the third month in a row — but the motive behind the group's strategy is no less elusive.
