Delivery Hero, Glovo fined EUR 239M by EU

The European Commission announced that it has fined Delivery Hero (DLVHF) and Glovo, two major food delivery companies, a total of EUR 329M for participating in a cartel in the online food delivery sector. In particular, the two companies (i) agreed not to poach each other’s employees; (ii) exchanged commercially sensitive information; and (iii) allocated geographic markets. The infringement covered the European Economic Area and lasted four years. Cartels like this reduce choice for consumers and business partners, reduce opportunities for employees and reduce incentives to compete and innovate. Both companies admitted their involvement in the cartel and agreed to settle the case. This is the first decision where the Commission finds a cartel in the labor market and the first time it sanctions the anti-competitive use of a minority share in a competing business.