Hitting 'Em Where It Hurts: EU Doles Out €329 Million Cartel Fine on Delivery Giants
Infringement of Cartel Regulations: European Union Slaps €329 Million Penalty on Delivery Service Companies - EU imposes €329 million fine on supply companies for breaching competition law
Delivery Hero and Glovo, two of Europe's leading food delivery services, have found themselves in hot water. Back in 2023, the Commission, Europe's antitrust enforcer, raided their offices, including Delivery Hero's headquarters in Berlin, prompting a cartel investigation. Facing the Music, Delivery Hero announced its readiness to collaborate fully with the Commission and set aside a staggering 400 million euros for potential penalties.
Fast forward to 2025, and the EU Commission hasn't been pulling punches. In a landmark antitrust ruling, they slapped Delivery Hero with a whopping €223 million fine, while Glovo, its subsidiary, received a €106 million smackdown. This is the EU's first fine for a no-poach agreement, which stifled competition in the labor market by restricting the recruitment of each other's employees [1][5].
Delivery Hero, a staple on the Frankfurt Stock Exchange since 2017, has a global reach, active in over 70 countries. Glovo, headquartered in Spain, operates in more than 20 countries [4].
The investigation, launched in July 2024, uncovered some shady dealings. It revealed that the companies shared confidential information, engaged in non-solicitation agreements, and even divided geographical markets among themselves [4][5]. This ruling sends a strong message, underscoring the importance of antitrust principles in the digital economy to prevent anticompetitive practices [5]. Both companies admitted to their involvement in the cartel, which operated from 2018 to 2022 [2][5].
- Delivery Hero
- EU
- EU Commission
- Europe
Sources:[1] https://www.euractiv.com/section/competition-state-aid/news/eu-fines-delivery-heroes-glovo-223-million-over-no-poach-agreement/[2] https://www.bloombergquint.com/onweb/eu-fines-delivery-hero-400-million-in-antitrust-probe[3] https://www.reuters.com/world/eu/eu-to-fine-delivery-hero-glovo-100-million-euros-over-poaching-accusations-2025-06-02/[4] https://www.theguardian.com/technology/2024/jul/11/eu-cartel-investigates-food-delivery-companies-delivery-hero-glovo[5] https://www.politico.eu/article/eu-fines-delivery-hero-cartel/
- In the midst of Europe's competitive industry, the EU Commission took a significant step to uphold competition policy by imposing a substantial fine on Delivery Hero and its subsidiary, Glovo, for their involvement in a no-poach agreement that violated antitrust laws in the finance sector.
- The €329 million fine imposed by the EU Commission on Delivery Hero and Glovo serves as a clear warning to businesses operating in the digital economy, demonstrating the EU's commitment to enforcing competition policy and preventing anticompetitive practices.
