The EU competition watchdog found that between 2018 and 2022, Delivery Hero used its stake in Glovo to restrict competition.
The companies exchanged sensitive business information, agreed not to poach each other’s employees, and divided up national food delivery markets across Europe.
Delivery Hero acquired a 94 percent stake in Glovo in July 2022, but the investigation focused on the period before it took full control. Both companies are significant players in Europe’s food delivery market.
The European Commission said the two firms had admitted their cartel involvement and agreed to pay fines to settle the case. Delivery Hero was fined €223 million and Glovo €106 million.
“Cartels like this reduce choice for consumers and business partners, reduce opportunities for employees and reduce incentives to compete and innovate,” the EU 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.
She added that it was the first time commission had sanctioned an agreement limiting workers’ freedom to move to competitors.
Delivery Hero and Glovo agreed not to recruit each other’s employees, initially focusing on managers but later extending to all staff except self-employed delivery drivers.
The two companies also shared commercially sensitive information on pricing and costs through emails and WhatsApp.
They coordinated to avoid competing in the same countries and agreed on which markets each would enter when neither had a presence.
By July 2020, the firms had stopped competing entirely by avoiding overlapping markets, limiting consumer choice and likely raising prices.
“Today’s settlement allows Delivery Hero to address the European Commission’s concerns while allowing stakeholders to move on swiftly,” Delivery Hero said.
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