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The European Commissionannounceda formal investigation into Berlin - based food delivery behemoth Delivery Hero and its Spanish subsidiary company , Glovo , on Tuesday , citing trust concerns . The Commission will launch an in - profoundness probe into agreement between the online delivery firms to shew whether any anticompetitive bodily process has select place .
“ The Commission is concerned that , before the coup , Delivery Hero and Glovo may have allocated geographical markets and shared commercially sensitive information(e.g . , on commercial strategies , prices , capacity , costs , product characteristic ) , ” the Commission write in apress release . “ The Commission is also concerned that the companies may have concord not to poach each other ’s employees . These practices could have been facilitated by Delivery Hero ’s nonage share in Glovo . ”
The move follows unannounced raid comport on the two companies ’ local role inJuly 2022andNovember 2023 .
From July 2018 , Delivery Hero held a minority percentage in Glovo — going on to acquire sole control in July 2022 , per the Commission , which noted that this is the first investigation it has take on into anti - competitive agreements “ that may have occurred in the context of a nonage shareholding by one manipulator in a competitor . ”
Delivery Hero and Glovo were contacted for a response to the investigation .
A Glovo spokesperson confirmed the Commission investigation , total : “ The investigation does not think that the European Commission has concluded on an literal violation of competition jurisprudence nor does it prejudge the result . Glovo will fully cooperate with the European Commission and is committed to meeting all compliance and regulatory requirements . ”
Delivery Hero has also published a standardised reception command , which is onlinehere .
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Earlier this calendar month , the German legal transfer titan warned investors it could ultimately present an antimonopoly amercement of up to € 400 million over the EU antimonopoly issue .
The online intellectual nourishment bringing quad has always beenfiercely competitive , with thin allowance demanding strategic positioning and a subspecies to secure the top ( or 2nd ) position in the market to have a hazard of building a executable business .
Add to that , after a abbreviated surge in custom of food legal transfer apps during the 2020 - 2021 coronavirus pandemic , the sphere has beenundergoing a ruffianly period of time of fudge factor , with bout of consolidation , market issue , layoffs and startups getting shut down .
This report was updated with a link to Delivery Hero ’s program line .
