Brussels, June 2nd (LaPresse) – The European Commission has fined Delivery Hero and Glovo, the two giants of online food delivery, a total of 329 million euros for participating in a cartel in the online food delivery sector. Specifically, the two companies agreed not to poach employees from each other, exchanged commercially sensitive information, and divided geographic markets. The infringement affected the European Economic Area (EEA) and lasted for four years. Both companies admitted their involvement in the cartel and agreed to settle the case.
This is the first decision where the Commission identifies a cartel in the labor market and the first time it has sanctioned the anti-competitive use of a minority stake in a competing business. Delivery Hero and Glovo are two of the largest food delivery companies in Europe. They deliver food (from restaurants or professional kitchens), groceries, and other retail products (non-food items) to customers who order via an app or website.
"Delivery Hero is less well-known because that's actually the name of the company. But the platform names vary. They have different platforms around the world. In Europe, they essentially have a brand called Foodora, which is used in Austria, for example, or in Finland or Sweden. But they also have other names in other markets, such as E-Food in Greece or Foodie in Cyprus," explains a EU official.
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