The European Commission (EC) announced on Tuesday the opening of a formal investigation into food delivery companies Glovo and Delivery Hero to determine whether they have engaged in practices contrary to free competition in the European Economic Area (EEA). According to a statement from the Community Executive, the investigation will focus on analyzing whether the two companies have violated the competition rules of the European Union (EU) by participate in a cartel in the ordering sector online and delivery of food, groceries and other everyday consumer goods.

The EC highlighted that the German Delivery Hero and the Spanish Glovo are “two of the largest food delivery companies in Europe”Since July 2018, Delivery Hero held a minority stake in Glovo, and in July 2022 it acquired sole control of the company.

The investigation is based on concerns that, prior to the full acquisition by Delivery Hero, both companies may have coordinated geographic markets and shared sensitive information from a commercial perspective, including commercial strategies, pricing, capacity, costs and product features. The possibility that the companies have agreed is also investigated not stealing employees from each other“These practices may have been facilitated by Delivery Hero’s minority stake in Glovo,” the Commission said.

If these suspicions are confirmed, the companies’ conduct could constitute a violation of EU competition ruleswhich prohibit cartels and restrictive business practices. The European Commission said it would conduct its in-depth investigation “as a matter of priority”, although it stressed that the opening of a formal investigation does not prejudge its outcome.

It should be recalled that in June 2022 and November 2023, the Commission carried out unannounced inspections at the offices of Delivery Hero and Glovo as part of an investigation into possible collusion in the food delivery sector.

Delivery Hero and Glovo cooperate with the EC

Delivery Hero, which in July 2022 acquired exclusive control of Glovo, had already warned about the possibility of facing a fine of more than 400 million euros for alleged violations of competition rules. The German company has stated that it is cooperating “fully” with the investigation and is committed to complying with all regulatory requirements.

For its part, Glovo has stressed that the start of the investigation does not necessarily imply a violation of the law and has expressed its willingness to cooperate with the European Commission. The company has also noted that it cannot provide further details at this stage.