German company Delivery Hero (DH), which operates in more than 70 countries and partners with around a half-million restaurants, may face a fine of nearly a half-billion dollars from the European Commission (EC) for alleged antitrust violations connected to its Spanish subsidiary Glovo.
In May 2021, DH sold its Foodpanda and Pauza holdings in Eastern Europe to Glovo. Later that year it became Glovo’s majority owner. This raised flags covered in rouge for the EC.
“The commission has concerns that the companies concerned may have violated Article 101 of the Treaty on the Functioning of the European Union, which prohibits cartels and restrictive business practices,” read a release at the time.The EC conducted investigations in June 2022 and November 2023.
The commission’s concerns have accelerated since then, to the tune of the expected $433 million sanction, which DH shared in an alert to investors on Sunday. At issue are alleged anti-competitive agreements to share national markets, exchange commercially sensitive information and apply no-poach agreements.
DH had previously set aside $200 million for penalties, which is now just a starting point, and has indicated that it will fully cooperate with the EC.
