On June 2, 2025, the European Commission imposed a €329 million fine on Delivery Hero and its subsidiary Glovo for operating a cartel in the online food delivery sector from July 2018 to July 2022, violating EU competition rules across the European Economic Area (EEA). The companies engaged in anti-competitive practices, including a no-poach agreement, sharing commercially sensitive information, and allocating geographic markets, reducing consumer choice, employee opportunities, and innovation. Delivery Hero was fined €223.285 million, while Glovo received a €105.732 million penalty, with both admitting their involvement and settling for a 10% fine reduction. At the exchange rate of N1,579/$1, the total fine equates to approximately $208 million or N520 billion, a significant sum in Nigeria, where Glovo operates.
The cartel began when Delivery Hero acquired a minority stake in Glovo in 2018, expanding to a full acquisition in 2022. The firms agreed not to hire each other’s employees, initially targeting managers but later covering all staff except self-employed drivers, limiting job mobility. They exchanged sensitive data on pricing, costs, and strategies via WhatsApp and emails, aligning their market conduct. By 2020, they had divided EEA markets, avoiding overlaps and coordinating market entries, which likely raised prices and stifled competition. EU Competition Commissioner Teresa Ribera called it the first EU case sanctioning a no-poach agreement and minority stake misuse, emphasizing its impact on labor markets.
In Nigeria, Glovo has facilitated over N71 billion in revenue for partners since 2021, serving 11 cities with 6,000+ restaurants and 2,400 riders, per Nairametrics. Its 76% gross merchandise value growth in 2024 reflects its market strength, though the fine may pressure operations. Posts on X, like @EU_Competition’s announcement and @Nairametrics’ coverage, highlight the case’s significance, while @BarbarianCap notes its precedent for antitrust enforcement. The settlement, lower than Delivery Hero’s anticipated €400 million provision, allows both firms to move forward, but the Commission vows to monitor consumer-facing sectors closely to prevent future cartels.
