EU fines Delivery Hero and Glovo €329mn for takeaway ‘cartel’
European Commission hands down first punishment for a “no-poach” deal and says food delivery groups shared trade secrets
The EU has fined European takeaway groups Delivery Hero and Glovo €329mn for taking part in an “online food delivery cartel”, in the latest antitrust crackdown by the bloc.
On Monday, the European Commission said the two groups had breached competition rules in the four years leading up to Delivery Hero’s acquisition in 2022 of a controlling stake in Glovo, when the German group only held a minority share in its Spanish rival.
The regulator said Delivery Hero had used its stake in Glovo to co-ordinate with it, with the two agreeing not to poach each other’s employees, and exchanging commercially sensitive information. The companies had also agreed which locations each would trade in, the commission said, adding that such co-ordination reduced choice and increased prices for consumers.
The probe was launched in July 2024, and followed raids of Delivery Hero and Glovo’s premises in June 2022 and November 2023.
The fine marks the first time that Brussels has penalised companies for the anti-competitive use of a minority share in a rival business. It is also the first instance in which it has punished groups for a “no-poach” agreement, in which groups agree not to take each other’s workers.
The EU’s competition chief Teresa Ribera said the case was “important” because of the way the practices were “facilitated through an anti-competitive use of Delivery Hero’s minority stake in Glovo”. She added: “Today’s decision shows once again that competition rules matter to citizens’ daily life.”
Delivery Hero said the settlement enabled “stakeholders to move on swiftly”, and reiterated its “commitment to continuing a culture of compliance throughout its organisation and operating in a responsible and ethical manner in the highly competitive industry in which it operates”.
The update comes at a time of consolidation for takeaway groups, which have faced a tougher macroeconomic environment after a pandemic-era boost.
Delivery Hero’s shares were hit last year when it first revealed the scale of the potential fine. It had previously set aside €400mn to deal with the probe, saying on Monday that the final amount was “lower than anticipated”. Its shares rose 1 per cent in lunchtime trading on Monday.
Both companies admitted their involvement in the cartel and agreed to settle the case, leading to a 10 per cent reduction in their penalties. Delivery Hero will pay €223mn in fines and Glovo will pay €106mn.