EU punishes Delivery Hero with 223 million euros for illegal agreements!

EU punishes Delivery Hero with 223 million euros for illegal agreements!

The EU Commission has imposed a fine of around 223 million euros on the food delivery service Delivery Hero. This penalty was imposed due to illegal agreements between Delivery Hero and its Spanish competitor Glovo. Both companies must now face the consequences of their anti-competitive practices, some of which affected pricing and strategic decisions. Agreements to avoid the poaching of staff and to geographically divide the market were also part of the agreements.

Delivery Hero's punishment is not the only one imposed in this context. Glovo, which is not active in Germany, was asked to pay almost 106 million euros. Loud Leadersnet The investigations have been ongoing for some time, with unannounced checks being carried out at the headquarters of both companies in November 2023. According to the EU Commission, the agreements between the companies took place via various communication channels, including email and WhatsApp.

Background of the penalties

Delivery Hero initially held a minority stake in Glovo until July 2022 before taking full control. However, the anti-competitive agreements occurred before this acquisition and during the period in which Delivery Hero was a minority owner. Both companies have admitted their wrongdoing, which may contribute to the EU Commission's decision to set the penalties within a certain framework.

Delivery Hero had originally expected an even higher penalty and had set aside 186 million euros as a precautionary measure for possible sanctions. Internal estimates had even predicted a fine of over 400 million euros. Nevertheless, the level of punishment shows that the EU Commission is determined to take action against anti-competitive behavior in the food delivery industry.

Market position and consequences

Despite the hefty fine, Delivery Hero remains one of the largest food and goods delivery platforms in Europe. In Austria the company is known under the Foodora brand. While the EU Commission has not provided any detailed information on the impact on consumers or competitors in Germany, the competitive situation in the industry is now in greater focus.

The outcome of the lawsuits, which could also impact the two industry giants, remains to be seen as consumers and competitors closely monitor how these developments will play out in the grocery delivery landscape.