EC Investigates Agreements in the Online Food Delivery Sector

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. 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 EC is concerned that, before the takeover, Delivery Hero and Glovo may have allocated geographic markets and shared commercially sensitive information. 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' behavior may breach EU competition rules that prohibit cartels and restrictive business practices.

In June 2022 and November 2023, the EC 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. The investigation is part of efforts to ensure that online food delivery and the grocery sector deliver choice and reasonable prices to consumers. In a young and dynamic market such as the one at stake, anti-competitive 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 EC's efforts to ensure a fair labor market where employers do not collude to limit the number and quality of opportunities for workers but compete for talent. It is the first investigation on no-poach agreements formally initiated by the Commission. This investigation is also the first by the EC into anti-competitive agreements that may have occurred in the context of a minority shareholding by one operator in a competitor.

“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 opportunities for workers,“ said Margrethe Vestager, EC EVP in charge of competition policy.