Illegal agreements: Delivery services must pay 329 million
The EU antitrust proceedings against Delivery Hero are concluded with a settlement that includes a hefty fine for the Berlin-based company.
Delivery Hero's various brands deliver food in numerous countries around the world.
(Image: Delivery Hero)
The delivery service Delivery Hero and its Spanish subsidiary Glovo must pay a cartel fine totaling around 329 million euros due to illegal agreements. The penalties mark the end of a multi-year investigation by the EU antitrust authorities, the European Commission announced in Brussels on Monday.
Delivery Hero acquired its Spanish competitor Glovo in 2018 and gradually increased its shares in the following years. Until the full takeover in July 2022, the EU Commission found that the companies had unlawfully agreed on prices, strategies and markets and agreed not to poach each other's staff.
Agreements and territories
The EU has had the two companies in its sights since 2022 and initiated proceedings in summer 2024. At that time, Delivery Hero had already acquired a majority stake in Glovo. Both have admitted the allegations, cooperated with the investigation and accepted the penalty. This officially ends the proceedings with a settlement.
"This case is important because the infringements involved Delivery Hero's minority stake in Glovo being used in an anti-competitive way," said Teresa Ribera, EU Commissioner for Competition. "It is also the first time that the Commission has sanctioned a non-solicitation agreement."
The company confirmed the settlement with the Commission and the conclusion of the proceedings on Monday. Last summer, Delivery Hero had warned that the expected fine could potentially exceed 400 million euros and had set aside corresponding reserves. Until then, the Berlin-based company had only set aside 186 million euros for the dispute.
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"For a culture of compliance"
"The settlement of 329 million euros is almost 20 percent lower than expected and reflects, among other things, that the Commission has recognized a lower intensity of the problems investigated for some periods of time," Delivery Hero announced, emphasizing its commitment to "a culture of compliance throughout the company and to responsible and ethical conduct".
Berlin-based Delivery Hero is one of the largest global delivery services and delivers food under various brands in numerous countries worldwide. In 2018, the company withdrew from the German market with the sale of Foodora, Lieferheld and Pizza.de to the Dutch Takeaway Group. A comeback attempt with Foodpanda was over after just six months.
(vbr)
