The European Union has fined German food delivery giant Delivery Hero and its Spanish subsidiary Glovo a combined €329 million ($376 million) for violating competition laws.
According to EU regulators, between 2018 and 2022, the two companies engaged in anticompetitive practices. These included sharing sensitive commercial information, agreeing not to recruit each other’s employees, and dividing national markets to avoid direct competition.
Although Delivery Hero acquired a 94% stake in Glovo in July 2022, the EU investigation focused on conduct prior to the full acquisition. Both companies admitted to their roles and accepted the fines as part of a settlement.
“Cartels like this reduce choice for consumers and business partners, limit opportunities for employees, and diminish incentives to compete and innovate*” the European Commission stated.
The fines break down as follows:
Delivery Hero: €223 million
Glovo: €106 million
EU competition chief Teresa Ribera highlighted the case as the first in which the Commission has penalized a “no-poach” agreement — a deal in which companies avoid competing for talent. Initially covering managerial staff, this agreement was later extended to nearly all employees, excluding delivery drivers, who were classified as self-employed.
In addition, both companies exchanged confidential data related to pricing, strategy, capacity, and market costs. They also coordinated their market expansions to avoid overlapping services, effectively ceasing to compete directly by mid-2020. This reduced consumer options and likely led to higher prices.
Delivery Hero confirmed it had already set aside provisions to cover the fine. The company operates in over 70 countries, including 16 within the European Economic Area (EEA), while Glovo is active in over 20 countries, with operations in eight EEA states.
