Delivery Hero, Glovo targets of EU cartel investigation

By Foo Yun Chee

BRUSSELS (Reuters) -German online food takeaway firm Delivery Hero and its Spanish unit Glovo will be investigated on concerns that they may have taken part in an online food delivery cartel, EU antitrust regulators said on Tuesday.

Earlier this month, Delivery Hero warned that the European Commission might fine it more than 400 million euros ($435 million) due to antitrust violations. The EU investigation followed two dawn raids last year.

Delivery Hero held a minority share in Glovo in 2018 and acquired sole control in July 2022.

"The Commission is concerned that, before the takeover, Delivery Hero and Glovo may have allocated geographic markets and shared commercially sensitive information," the EU watchdog said.

It said the companies may have agreed not to poach each other's employees and that these practices may have been facilitated by Delivery Hero's minority share in Glovo.

"Online food delivery is a fast-growing sector, where we must protect competition," EU antitrust chief Margrethe Vestager said in a statement.

Delivery Hero said it was fully cooperating with the Commission and committed to meeting all compliance and regulatory requirements.

The company added that it "remains fully on track to meet its FY 2024 guidance, with substantial further increase in profitability in 2025 and beyond".

Companies risk fines as much as 10% of their global annual turnover for EU antitrust violations.

($1 = 0.9200 euros)

(Reporting by Foo Yun Chee; Editing by Jan Harvey)