Delivery firm faces hefty €223 million penalty
Chat alert! Here's a juicy one about Delivery Hero, a food delivery service based in Berlin, Germany.
Brussels has just slapped Delivery Hero with a whopping €223 million fine! Why, you ask? Seems like Delivery Hero, along with Spanish competitor Glovo, engaged in some underhanded tactics that violated European Union (EU) competition rules. According to the EU Commission, these acts included price fixings and collaborative strategies. Glovo, the lesser offender, received a €106 million penalty.
You might wonder, what exactly did they do that was so evil? Well, allegedly, the two companies agreed not to poach employees from each other and even divided local markets. That's right - a secret agreement between Delivery Hero and Glovo to limit job opportunities and competition!
Commissioner Teresa Ribera, the brain behind the EU's Competition department, said this was the first time the Commission has penalized companies for such labor agreements. She believes these actions contribute to a fair labor market where employers don't collude to restrict opportunities for workers.
The investigation into this "WhatsApp cartel" (ov bastardos) has been ongoing for some time. In November 2023, the Commission conducted unannounced inspections at Delivery Hero in Berlin and Glovo in Barcelona. Delivery Hero cooperated fully with the Commission throughout the investigation, but back in 2022, it took full control of Glovo. However, these agreements appear to have taken place before the takeover.
Last year, Delivery Hero announced that a fine of possibly more than €400 million was coming their way. They had even set aside €186 million to pay for legal antics. However, the final fine was less than expected, around 20% lower, due to the Commission acknowledging that the criticized behavior was not as intense over certain periods.
What does this mean for consumers and competitors in the German market, you ask? The Commission didn't offer any comment, but it's worth noting that Delivery Hero is quite active in the German market while Glovo is not.
That's all for now. This is just the tip of the iceberg when it comes to the seedy underworld of big tech. Don't forget to look out for our upcoming article on the best restaurant in Germany! Strap in, folks, we're gonna need a bigger boat.
In the context of the fine imposed on Delivery Hero for breaching EU competition rules, one might question the company's future approach towards finance and business, particularly in the German market. The EU Commission's decision to penalize Delivery Hero and Glovo for their collusive strategies will likely have implications for competition and employment opportunities within the food delivery sector.
