EU punished Delivery Hero with 223 million euros for illegal agreements!
EU punished Delivery Hero with 223 million euros for illegal agreements!
Berlin, Deutschland - The EU Commission has a fine of around 223 million euros against the food delivery service Delivery Hero. This punishment was pronounced due to illegal agreements between Delivery Hero and the Spanish competitor Glovo. Both companies must now face the consequences of their contrary practices, some of which concerned pricing and strategic decisions. Agreements to avoid the worries of personnel and the geographical market division were also part of the agreements.
The punishment of Delivery Hero is not the only one that was imposed in this context. Glovo, which is not active in Germany, was asked to pay for almost 106 million euros. According to Leadersnet , the investigations have been underway for a long time, with unannounced controls in both companies being carried out in November 2023. According to the EU Commission, the agreements between the companies took place via various communication channels, including e-mail and WhatsApp.
background of the punishments
DELIVERY Hero initially held a minority stake in Glovo before she took over full control. However, the conflicting agreements took place before this takeover and during the time when Delivery Hero was a minority owner. Both companies survived their misconduct, which may contribute to the decision of the EU Commission to measure the punishments in a certain framework.
Originally, Delivery Hero had expected an even higher punishment and, as a precaution, had 186 million euros for possible sanctions. Internal estimates even forecast a fine of over 400 million euros. Nevertheless, the penalty height shows that the EU Commission is determined to act against competitive behavior in the grocery delivery industry.
market position and follow
Despite the high fine, Delivery Hero remains one of the largest platforms for food and goods deliveries in Europe. The company is known in Austria under the Foodora brand. While the EU Commission has not given any detailed information on the effects on consumers or competitors in Germany, the competitive situation in the industry is now more intensive in focus.The result of the procedures that could also have an impact on the two giants of the industry remains to be seen, while consumers and competitors observe exactly how these developments will affect the food delivery landscape.
| Details | |
|---|---|
| Ort | Berlin, Deutschland |
| Quellen | |