BRUSSELS — Spanish food delivery giant Glovo is under special scrutiny in Brussels. The European Commission has here we go The company is formally investigating whether the platform, which was acquired by Germany’s Delivery Hero in 2022, has violated EU competition rules. A cartel in the online delivery industry of food.
Delivery Hero and Glovo are the two largest food delivery companies in Europe. It operates in more than 70 countries around the world and cooperates with more than 500,000 restaurants. The second company will have a turnover of more than 150 million euros by 2023 and be present in more than 1,300 cities in 25 countries around the world. Delivery Hero has held a minority stake in Glovo since 2018, but acquired sole control in July 2022.
The European Commission has already carried out surprise inspections on the premises of Delivery Hero and Glovo in June 2022 and November 2023, respectively. In Brussels, they suspect that, before the acquisition, the two companies may have Divide geographic markets and share commercially sensitive informationSince 2018, through the participation of Delivery Hero In Glovo (albeit with a minority share), the two companies will exchange commercial strategies, prices, capacities, costs and product features. The Commission is also concerned that the companies may have agreed not to poach each other’s employees.
He warned: “If proven, such conduct could breach EU competition rules, with potential negative impacts on prices, choice for consumers and opportunities for workers.” Margrethe VestagerExecutive Vice President of the European Commission. The investigation is part of a wider effort by the EU executive to regulate “young and dynamic” markets, such as the online delivery market. In March this year, after repeated resistance from many EU countries, use Protect almost all instructions 30 million Riders and workers on digital platforms in the EU.