Commission opens investigation into possible anticompetitive agreements in the online food delivery sector

This article is brought to you in association with the European Commission.

The European Commission has opened a formal antitrust investigation to assess whether Delivery Hero and Glovo have breached EU competition rules by participating in a cartel in the sector of online ordering and delivery of food, grocery and other daily consumer goods in the European Economic Area (‘EEA’).

Delivery Hero and Glovo are two of the largest food delivery companies in Europe. From July 2018, Delivery Hero held a minority share in Glovo, and in July 2022 it acquired its sole control.

The Commission is concerned that, before the takeover, Delivery Hero and Glovo may have allocated geographic markets and shared commercially sensitive information (e.g., on commercial strategies, prices, capacity, costs, product characteristics). The Commission is also concerned that the companies may have agreed not to poach each other’s employees. These practices could have been facilitated by Delivery Hero’s minority share in Glovo.

If proven, the companies’ behaviour may breach EU competition rules that prohibit cartels and restrictive business practices(Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’) and Article 53 of the EEA Agreement).

The Commission will now carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome.

Background

In June 2022 and November 2023, the Commission carried out unannounced inspections at the premises of Delivery Hero and Glovo, as part of its own-initiative inquiry into possible collusion in the food delivery sector.

Delivery Hero, headquartered in Germany, is a company active in the food ordering and delivery business. It is currently present in more than 70 countries worldwide and partners with more than 500,000 restaurants. Delivery Hero is listed on the Frankfurt Stock Exchange

Glovo, headquartered in Spain, is a company active in the food ordering and delivery business. It is currently present in more than 1,300 cities in 25 countries across the globe. In July 2022, Delivery Hero acquired the majority of shares in Glovo, and Glovo became Delivery Hero’s subsidiary.

Today’s investigation is part of the Commission’s efforts to ensure that online food delivery and the groceries sector deliver choice and reasonable prices to consumers. In a young and dynamic market such as the one at stake, anticompetitive agreements and restrictive business practices, including cartels through market allocation, may lead to hidden market consolidation, with potential negative effects on competition.

This investigation is also part of the Commission’s efforts to ensure a fair labour market where employers do not collude to limit the number and quality of opportunities for workers but compete for talents. It is the first investigation on no-poach agreements formally initiated by the Commission.

This investigation is also the first by the Commission into anti-competitive agreements that may have occurred in the context of a minority shareholding by one operator in a competitor.

Article 101 TFEU prohibits agreements and concerted practices which may affect trade and prevent or restrict competition. The implementation of this provision is defined in Regulation No 1/2003. Article 101 TFEU can also be applied by national competition authorities.

Article 11(6) of Regulation No 1/2003 provides that the opening of proceedings by the Commission relieves the competition authorities of the Member States of their competence to also apply EU competition rules to the practices concerned. Article 16(1) further provides that national courts must avoid adopting decisions that would conflict with a decision contemplated by the Commission in proceedings it has initiated. The Commission has informed the companies and the competition authorities of the Member States that it has opened proceedings in this case.

There is no legal deadline for bringing an antitrust investigation to an end. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the companies concerned cooperate with the Commission and the exercise of the rights of defence.

For more information on the Commission’s actions against cartels, including on how individuals or companies can report suspicious cartel behaviour, see the Commission’s dedicated cartels website. The website also provides statistics on cartel enforcement. A periodic compilation of antitrust and cartel news is available in the Competition Weekly News Summary.

More information on the investigation will be available on the Commission’s competition website, in the public case register under the case number AT.40795.

Quote(s)

Online food delivery is a fast-growing sector, where we must protect competition. This is why we are investigating whether Delivery Hero and Glovo agreed to share markets and not to poach each other’s employees. If confirmed, such conduct may amount to a breach of EU competition rules, with potential negative effects on prices and choice for consumers and on opportunities for workers.

Margrethe Vestager, Executive Vice-President in charge of competition policy