Sizzling Scandal: EU Slaps €329 Million Fine on Food Delivery Giants Delivery Hero and Glovo
Antitrust law breach penalties: EU imposes a 329 million euro fine on food delivery firms - Supplier firms penalized for breaching EU competition law, with a fine of 329 million euros imposed on them
Bite into Some Real Tea: It turns out Delivery Hero and Glovo, two of Europe's biggest food delivery services, have been embroiled in a furious feast of troubles. In 2023, the Commission swooped down on their offices, including Delivery Hero's headquarters in Berlin. The EU Commission started digging into these companies for alleged cartel activity, kicking off a probe in July of the previous year.
Facing the Heat: Delivery Hero, ever the cool cucumber, claimed it would play ball with the EU Commission and, true to its word, set aside a hefty €400 million for any potential cartel fines.
Stocking Up: Delivery Hero has been a Frankfurt Stock Exchange darling since 2017, and in 2018, it started acquisition trends, snapping up shares in Glovo, eventually taking the reins in 2022.
Going Global: Delivery Hero flaunts its presence in over 70 countries, and Glovo, based in Spain, gallops in more than 20 nations.
- Delivery Hero
- EU
- EU Commission
- Europe
Fast food Fiasco: A Timeline of Events
History's B loop:
- Pre-2018: Delivery Hero and Glovo were like two peas in a pod, with the former investing in the latter, laying the groundwork for later, tasty collaborative ventures.
- 2018-2022: This delicious duo took their act to the next level, engaging in anti-competitive practices. They swapped commercially sensitive secrets, agreed on exasperating employee no-poach clauses, and divided national food delivery markets within the European Economic Area (EEA)[2][5].
- 2022 (July): Delivery Hero turned Glovo from a minority shareholder into a major domino piece, owning 94% of the Spanish company[5].
- 2023: The European Commission cried foul, opening a formal investigation into Delivery Hero and Glovo's anti-competitive practices[5].
- June 2, 2025: The European Commission tossed out a fine of €329 million on Delivery Hero and Glovo for flouting EU competition rules by joining a cartel[1][3][4].
- June 2, 2025: Faced with the heat, Delivery Hero and Glovo accepted the EU's terms, admitted their guilt, and agreed to cough up the cash[5].
A Side of Impact: Examining the Aftermath
- Compliance and Regulation: The investigation underscored the need for EU antitrust compliance. Delivery Hero and Glovo must ensure their future shenanigans fall in line with EU competition rules to avoid further penalties[5].
- Market Competition: The cozy relationship has reduced competition in the online food delivery market, affecting consumer choices and stifling innovation. The EU's action aims to restore competition, which could spice up competition in Europe[5].
- Employee Recruitment and Retention: The no-poach agreements dampened job opportunities. With these agreements now a no-go, Delivery Hero and Glovo will need to revamp their HR strategies to attract and retain employees while keeping EU regulations in check[2].
- Financial Impact: Delivery Hero will shell out €223 million, and Glovo around €106 million. This monetary spill could impact their strategic investments and budgets in Europe[5].
- Reputation and Stakeholder Relations: This settlement and admission of misdeeds could leave a bitter taste in the mouths of Delivery Hero's and Glovo's stakeholders, including investors and customers. Regaining trust and demonstrating compliance with EU regulations will be critical[5].
- The EU Commission's investigation into Delivery Hero and Glovo's anti-competitive practices has highlighted the importance of EU antitrust compliance for businesses operating in the European Economic Area (EEA), particularly within the online food delivery market.
- The fine of €329 million imposed by the EU Commission on Delivery Hero and Glovo for flouting EU competition rules by joining a cartel will have a financial impact on both companies, potentially affecting their strategic investments, budgets, and stakeholder relations in Europe.
