Delivery Hero and Glovo Fined €329 Million by EU for Cartel Practices

In a landmark antitrust decision, the European Commission imposed a combined fine of €329 million on Delivery Hero and Glovo in July 2024 for engaging in cartel behavior. The investigation revealed an agreement between the two companies to limit competition in the online food delivery sector across seven European Union countries.

The Cartel Agreement

Between 2018 and 2022, Delivery Hero and Glovo entered into a series of informal agreements designed to avoid competing for delivery workers. This involved a commitment not to “poach” each other’s riders, effectively suppressing wage competition and preventing more favorable conditions for workers Sociedade Civil. The arrangement aimed to control the market and maintain dominance, limiting choices for consumers and creating a detrimental environment for delivery personnel.

Facilitation Through Minority Shareholding

The collusion was facilitated by Delivery Hero’s minority stake in Glovo. This ownership structure granted Delivery Hero access to sensitive information from Glovo board meetings and voting rights, enabling it to influence decision-making and align the companies’ strategies MWE. The Commission found that this access allowed Delivery Hero to obtain commercially sensitive information and influence Glovo’s actions, ultimately contributing to the cartel’s operation.

“No-Poach” Agreements and Labor Market Control

A central element of the cartel was the implementation of “no-poach” agreements, which restricted the companies from actively recruiting each other’s workers. This practice effectively captured the labor market, preventing competitive wage increases and limiting worker mobility. Rita Mendes, a competition law expert at Universidade Nova de Lisboa, explained that the companies acted as employers in controlling the workforce, despite presenting themselves otherwise Sociedade Civil.

Impact and Consequences

While the financial consequences were significant, the impact extended beyond the fines. The cartel resulted in fewer alternatives for consumers and a labor market characterized by abusive practices. The lack of a third major delivery platform created a false sense of choice, allowing the dominant companies to impose restrictive rules on delivery workers, including opaque penalties and biased reward systems Sociedade Civil.

Broader Implications for Competition Law

This case marks the European Commission’s first decision addressing “no-poach” agreements and the risks associated with minority shareholdings in competitor companies Linklaters. It signals a heightened focus on labor and digital markets, as well as increased scrutiny of dominant tech players. Enforcement in these areas intensified throughout 2025, with ongoing developments expected in 2026, including the employ of artificial intelligence for detecting anti-competitive behavior The Lawyer.