On Tuesday 23 July, the European Commission announced that it had opened an in-depth investigation into concerns that Delivery Hero and Glovo, two of the largest companies in the sector of online ordering and delivery of food, groceries and other everyday consumer goods, may have entered into an illegal cartel in this market in the European Economic Area (EEA).
Specifically, the Commission suspects that Delivery Hero and Glovo allocated geographic markets and shared commercially sensitive information prior to Delivery Hero’s takeover of Glovo. In addition, the companies are suspected of having agreed not to poach each other’s employees.
On a preliminary basis, the Commission considers that these alleged practices may have been facilitated by Delivery Hero’s minority share in Glovo.
If this behaviour were to be confirmed by the investigation, it would constitute an infringement of European competition law, in particular Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the EEA Agreement, which prohibits cartels and restrictive business practices. (Original version in French by Émilie Vanderhulst)