The European Commission has levied a substantial fine totaling €329 million on food delivery giants Delivery Hero and Glovo after uncovering an extensive cartel that lasted four years and spanned the entire European Economic Area (EEA). The Commission accused both companies of engaging in coordinated anticompetitive behavior that reduced competition, limited consumer choices, and stifled innovation across national markets.

According to the Commission’s official statement released on Monday, both companies admitted their involvement in the violations and opted to settle, qualifying for a reduced fine under EU settlement procedures.

Years of Collusion: A Four-Year Violation of Competition Law

The European Commission’s investigation revealed that between July 2018 and July 2022, Delivery Hero and Glovo progressively replaced competitive behavior with “multi-layered anticompetitive coordination.” The nature of their collusion included:

• Non-poaching agreements: Initially, a limited no-hire clause was embedded in the shareholder agreement signed when Delivery Hero acquired a minority stake in Glovo in 2018. Over time, this evolved into a broader understanding not to actively recruit or approach each other’s employees.

• Exchange of sensitive commercial information: The two firms shared strategic insights, including data on pricing, capacity, operational costs, and market strategies. This exchange allowed both companies to align their conduct, removing the unpredictability that typically fuels market competition.

• Geographic market allocation: Most alarmingly, the companies agreed to divide up European markets. They actively avoided entering each other’s strongholds, reduced competitive overlaps, and coordinated entries into new markets. This practice effectively limited consumer choices across the continent and blocked potential competition in emerging food delivery spaces.

The Evolution of Delivery Hero’s Stake in Glovo

The antitrust violation coincided with Delivery Hero’s increasing ownership of Glovo. The German-headquartered company began with a minority, non-controlling interest in July 2018 and incrementally increased its influence until gaining full control in July 2022. According to the Commission, this evolving ownership structure provided fertile ground for coordinated behavior, with both parties steadily dismantling the competitive barriers that should exist between independent companies.

The timeline of events reveals how shareholder arrangements, rather than spurring competition, enabled a form of strategic cooperation that undermined market fairness. This practice directly contradicts the spirit of the European Union’s competition laws designed to protect consumers, small businesses, and market innovation.

Breakdown of the Fines

The European Commission imposed the fines under its 2006 Guidelines on setting penalties for breaches of antitrust law. Several aggravating factors influenced the final sum, including:

• The cartel’s wide geographic scope, covering the entire EEA

• The deliberate and structured nature of the agreements

• The four-year duration of the misconduct

• Varying levels of collusion intensity throughout the period

In line with its 2008 Settlement Notice, the Commission granted a 10% reduction to both firms’ fines as they acknowledged their wrongdoing and accepted liability.

Here’s how the fines break down:

• Delivery Hero SE: €223,285,000

• Glovoapp23 SA: €105,732,000

The significant fines reflect the Commission’s intention to send a strong deterrent message to digital platform operators and other businesses tempted to engage in similar anticompetitive practices.

Consumer Impact and Competitive Implications

The European Commission emphasized that the Delivery Hero-Glovo cartel harmed consumers and business partners by limiting options, decreasing the incentive to innovate, and driving up costs. By restricting free employee movement, they also hindered professional opportunities in a booming gig economy sector that relies heavily on flexible labor and open competition.

“This cartel affected a sector that became critical during the COVID-19 pandemic,” said a Commission official. “Instead of competing to provide better service, faster delivery, and lower costs, these companies chose coordination over competition.”

While both firms remain prominent players in the food delivery landscape, their reputations may face lasting damage, especially as European regulators ramp up enforcement of digital market rules.

Nigerian Market Relevance: Glovo’s Growing Footprint

The implications of the EU’s decision stretch beyond Europe. Glovo, one of the fined parties, operates extensively in Nigeria and other emerging markets. Since launching in Nigeria in 2021, the company has onboarded over 6,000 restaurants and retail outlets, supported by more than 2,400 active delivery riders.

According to a recent report, Glovo has facilitated over ₦71 billion in revenue for Nigerian partners. Additionally, the company witnessed a 76% growth in gross merchandise value (GMV) in 2024, alongside a major shift in payment preferences—digital payments rose from 12% in 2021 to 61% in 2024, indicating increased consumer trust in cashless transactions.

While the EU ruling doesn’t directly penalize Glovo’s African operations, it casts a spotlight on corporate governance practices and may prompt local regulators to scrutinize the competitive dynamics in Nigeria’s fast-growing delivery market.

What This Means for the Industry

The Delivery Hero-Glovo case adds to the growing list of antitrust investigations targeting tech-driven companies in the platform economy. It highlights how seemingly small contractual clauses—like no-hire agreements—can evolve into complex arrangements that fundamentally distort competition.

For investors, regulators, and consumers alike, the message is clear: dominance in the digital economy must not come at the expense of fair play. And for startups entering the food delivery space, the lesson is equally vital—growth strategies should be based on innovation and customer value, not behind-the-scenes coordination.

Final Thoughts

As Delivery Hero and Glovo pay their record fines and attempt to move on from the scandal, the European Commission’s action serves as a stark reminder that competition law remains a cornerstone of the EU’s economic framework. It also raises broader questions about the oversight of digital platforms, particularly those operating across borders and jurisdictions.

For consumers and small businesses, enforcement actions like this reinforce their rights to a competitive marketplace—where choice, price, and service quality are driven by genuine competition, not secret deals.