EU Antitrust Regulators Intensify Scrutiny of Food Delivery Sector
European Union antitrust authorities have conducted a new wave of unannounced inspections at two major online food delivery companies headquartered within the bloc. While the Commission hasn’t officially named the firms involved, this action follows similar raids in July 2022 targeting Spain’s Glovo and Germany’s Delivery Hero - both of which later confirmed their involvement.
Expanding Scope of the Investigation
The probe, initially focused on potential market allocation violations, has now broadened to examine:
- Alleged no-poach agreements between compe*****s
- Exchanges of sensitive commercial information
- Potential cartel formation and restrictive business practices
This development marks a significant escalation in the EU’s scrutiny of the competitive landscape in the fast-growing food delivery sector.
Company Responses and Background
Both Glovo and its parent company Delivery Hero have confirmed the latest inspections, issuing statements emphasizing their cooperation with authorities. Delivery Hero noted:
“The inspection doesn’t imply any conclusion of wrongdoing nor prejudge the investigation’s outcome. We remain fully committed to cooperating with the Commission.”
Key facts about the companies under scrutiny:
- Delivery Hero: Founded in 2011, operates in 70+ countries through multiple brands
- Glovo: Acquired by Delivery Hero in late 2021, specializes in food delivery and quick commerce
Understanding the EU’s Antitrust Process
The Commission clarified that such inspections represent preliminary steps in antitrust investigations, not determinations of guilt. Important considerations:
- No fixed timeline exists for completing such probes
- The expanded scope suggests regulators have identified additional areas of concern
- Companies can benefit from the EU’s leniency program for cooperating with investigations
The EU also maintains a whistleblower tool for anonymous reporting of antitrust violations.
Why This Matters for the Food Delivery Industry
This investigation highlights:
- Increasing regulatory focus on competition in digital platforms
- Potential risks of market consolidation in the food delivery sector
- The importance of compliance with EU competition laws for tech-enabled services
As the probe continues, industry observers will be watching for potential impacts on market dynamics and business practices in Europe’s €30 billion food delivery market.
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