The European Commission has launched a formal antitrust investigation to assess whether Delivery Hero and Glovo have violated EU competition rules. This was reported by UNN with reference to the European Commission.
Details
It is noted that Delivery Hero and Glovo are the two largest food delivery companies in Europe. Since July 2018, Delivery Hero has owned a minority stake in Glovo, and in July 2022, it gained sole control.
The Commission is concerned that prior to the merger, Delivery Hero and Glovo may have shared geographic markets and exchanged commercially sensitive information (e.g., commercial strategies, prices, capacity, costs, product characteristics).
The EU is also concerned that the companies may have agreed not to poach each other's employees. This practice could have been facilitated by Delivery Hero's minority stake in Glovo.
If proven, the companies' behavior may violate EU competition rules that prohibit cartels and restrictive business practices.
The Commission will conduct its in-depth investigation as a matter of priority. The initiation of a formal investigation does not prejudge its outcome.
Recall
The European Commission suspects that Apple is “illegally suppressing competition” through its Apple Store app store. The company now faces a fine of up to 10% of its global annual revenue.