Millionaire fine for Delivery Hero and Glovo. The European Commission has sanctioned both companies with a total of 329 million euros to form a sign In the home delivery sector, exchanging sensitive information, distributing the markets and renouncing to hire staff of the other company.
Specifically, the fine for delivery hero is approximately 223 million of euros, while Glovo’s rises to 106 million. Both companies, however, have a 10% discount on sanctions because they recognized their participation in the poster and reached an agreement with Brussels.
Illegal behaviors
The behavior contrary to the European norms that are now sanctioned began in July 2018when the German company Delivery Hero bought a minority participation of Glovo, and ended four years laterin July 2022, when the first one took the total control of the Barcelona -based cast company. The cartel formed by both companies committed Three illegal behaviors:
- First, a “No-Poach” agreement or “non -capture”, for which they promised not to request or hire workers of the other company. For example, Delivery Hero could not make a job offer to a Glovo worker. This agreement, however, did not cover the distributors or ‘riders’, but to qualified workers.
- In addition, both companies carried out a PRIVILEGED INFORMATION EXCHANGEsince Delivery Hero used a minority participation in Glovo to obtain information about their future strategies and prices. Although it is not illegal to have a minority participation in a competitor, it is to use that position to obtain confidential information.
- On the other hand, the two companies European markets were distributed to make sure they did not compete for customers. In this way, in a specific country, consumers who wanted to ask for food at home only had access to a supplier and could not compare prices and opt for the cheapest.
This is the first time that the Commission sanctions companies for ‘non-poaching’ agreements and also the first in which it recognizes that companies can use minority participations in rival companies for anti-competitive purposes.
Almost a year ago, the Commission He opened an investigation formal to both companies to determine if they had incurred practices contrary to free competition. In June 2022 and November 2023 he already carried out inspections without prior notice in his offices as part of the research on a possible collusion in the food delivery sector.
