Cartel Penalties: EU Slaps €329M Fine on Delivery Hero and Glovo for Anticompetitive Practices
EU Levies €329 Million Penalty for Antitrust Infringements on Delivery Services - Companies in supply sector penalized for breach of European competition law, face financial penalty of approximately EUR 329 million
In the realm of European food delivery services, Delivery Hero and Glovo, two giants, found themselves in hot water in 2025. The EU Commission, keeping a watchful eye, had raided their offices, including Delivery Hero's headquarters in Berlin. The investigation, launched in July 2024, was instigated by a cartel probe initiated in the previous year.
In a bid to cooperate with the EU Commission, Delivery Hero had set aside a whopping €400 million for a potential fine. Listed on the Frankfurt Stock Exchange since 2017, Delivery Hero had gradually acquired a majority stake in Glovo, finally completing the takeover in 2022.
Operating in over 70 countries worldwide, Delivery Hero, and Glovo, headquartered in Spain and active in more than 20 countries, held a significant position in the European food delivery market.
The Commission's Findings
- No-Poach Agreements: The EU Commission uncovered a series of anticompetitive practices, including no-poach agreements between the companies, deemed harmful to competition.
- Information Exchange: The companies were discovered to have shared sensitive business information, fostering coordination and potentially hurting competition.
- Market Partitioning: The Commission pointed to the partitioning of national food delivery markets as an attempt to further restrict competition.
The Fateful Raid and Investigation
The Commission conducted surprise inspections at both companies in June 2022 and November 2023. The formal investigation commenced in July 2024.
The Verdict
On June 2, 2025, the European Commission levels a €329 million fine on Delivery Hero and Glovo for their role in a cartel. This landmark decision marked the Commission's initial action against no-poach agreements, emphasizing the significance of abiding by EU competition laws. The fine served as a testament to the Commission's dedication to preserving fair competition and consumer interests in the fast-evolving online food delivery sector.
The Bottom Line
- Compliance: The case underscores the potential risks associated with minority stakes in competitors and the necessity of ensuring that such investments avoid fostering anticompetitive behavior.
- No-Poach Agreements: The decision sets an important precedent for dealing with no-poach agreements within the EU, aligning with the growing efforts by national competition authorities to stamp out similar practices.
In the context of the European Commission's investigation and subsequent fine on Delivery Hero and Glovo for anticompetitive practices, it is crucial for the business sector to adhere to competition policy, particularly in industries such as finance and food delivery. The EU's imposition of a €329 million fine on these companies serves as a reminder of the consequences of violating community law, especially with regards to competition policy, including aspects such as no-poach agreements, information exchange, and market partitioning.
