European Commission Fines Glovo and Delivery Hero for Cartel Agreement
The European Commission (EC) has imposed significant fines on delivery giants Glovo and Delivery Hero, totaling €329 million, due to their involvement in a cartel that spanned four years. This ruling highlights serious violations of European competition law, where the two companies were found to have exchanged sensitive information, divided markets, and refrained from hiring employees from each other.
On Monday, the EC announced a fine of €105.7 million for Glovo and €223.3 million for Delivery Hero. Notably, these fines were reduced by 10% as both companies admitted to their illicit conduct during the investigation, showcasing a rare level of cooperation with regulatory authorities.
The cartel's activities began in July 2018, shortly after Delivery Hero acquired a minority stake in Glovo. The anti-competitive behavior persisted until July 2022, when Delivery Hero fully took control of the Barcelona-based delivery service.
The investigation revealed that the two firms engaged in practices detrimental to competition in the delivery market, which could have harmed both employees and consumers. Such actions undermine the principles of fair competition that are fundamental to the EU's single market.
This case is a significant reminder of the EC’s commitment to enforcing competition laws and promoting a fair playing field in the market. It also serves as a warning to other companies about the potential repercussions of collusion and anti-competitive practices.
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