Glovo and its Delivery Hero matrix, sanctioned with 329 million euros for creating a cartel to distribute the market
The European Commission has launched a forceful message to the European digital ecosystem: competition also applies in the world of platforms. In a historical case, Glovo and his Delivery Hero matrix, Two referent names of home delivery at home, have been sanctioned with a total of 329 million euros for participating in an illegal poster that operated for four years in the European economic space.
Three key practices and a questioned relationship
As explained by the Commission, their investigations have revealed that, between July 2018 and July 2022, both companies agreed three types of anti -competitive behaviors:
Do not capture employees with each other: through non -hiring clauses that were extended progressively until they became a generalized agreement. It is what the commission has called “labor cartel.”
Exchange sensitive information: on prices, commercial strategies and territorial expansion.
Geographical markets are distributed: avoiding competing in the same countries and coordinating tickets into new markets.
The most delicate thing is that these practices were possible thanks to the fact that Delivery Hero acquired a minority participation in Glovo, before assuming total control of the company in 2022. This investment, although legal in itself, facilitated a level of access and influence that the Commission considers excessive and harmful to the competition.
Recall that the German Delivery Hero is a world food cast casting giant that is quoted in the Frankfort Stock Exchange, and is present in more than 70 countries, 16 of them in the European Economic Space. Collaborates with hundreds of thousands of restaurants. Delivery Hero. Meanwhile, Glovo, based in Spain, is present in more than 20 countries, 8 of them in the EEE.
These are the fines to Glovo and Delivery Hero
The fines have been calculated following the 2006 guidelines and applying a 10% reduction by acceptance of responsibility:
Delivery Hero: € 223.2 Glovo: € 105.7 million
Both companies recognized their participation in the poster and accepted the procedure of simplified agreement, which accelerated the resolution and reduced the total amount. Of course, in addition to the fine, the commission's decision allows any affected party (users, competitors, former employees) to demand for damages before national courts, What could open the door to litigation by companies that saw their growth or talent limited due to this pact.
As explained by the European vice president, the Spanish Teresa Ribera: «The parties agreed not to mutually hire their employees, exchanged information and geographical markets were assigned within the EEE. This case is important because these practices were facilitated through an anticompetitive use of the minority participation of Delivery Hero in Glovo. In addition, it is the first time that the Commission sanctions a non -hiring agreement, in which companies stop competing for the best talent and reduce opportunities for workers ».
A legal milestone: the first labor poster sanctioned by the EU
Although we have been in which the fines, sanctions and investigations to the digital giants (goal, google, Amazon …) have follow each other, This case marks two unpublished legal precedents:
It is the first time that the commission sanctions a Labor poster, That is, an agreement between companies not to compete for talent. When the mobility of employees is vetoed, professional evolution is limited in a sector already tensioning for the lack of qualified profiles.
And it is also the first time that the Anticompetitive use of a minority participation In a rival company. That is, the commission estimates that consumers could have paid more or had fewer options on their favorite cast platforms due to this undercover coordination. In addition, when markets are distributed and not compete in talent, platforms decrease pressure to innovate or improve their conditions for partners and users.
Source: European Commission
So as you imagine, this combination raises New alerts for any company that has crossed investments in competitive companiesespecially in high growth markets such as delivery, mobility or marketplaces. Even without majority control, an investment can have anticompetitive implications if it allows to influence strategic decisions or access confidential information.
For startups that operate in similar verticals – logistic, mobility, travel, Fintech – this forces to carefully review partners of partners, non -competition clauses and commercial agreements.
Image: Chatgpt
