Have the article read by OpenAI (Beta). Please note that AI translations may take some time to process.Brussels (dpa) – In a press release on Tuesday, the European Commission announced an investigation into possible cartel activity by German food delivery company Delivery Hero.
Delivery Hero acquired Glovo, a Spain-based food delivery company, in July 2022, after previously holding a minority stake in the company since 2018. According to the bloc’s top competition authority, Glovo and Delivery Hero are two of the largest food delivery companies in the EU.
The European Union’s top competition watchdog suspects that prior to the acquisition, the companies carved up “geographic markets and shared commercially sensitive information.”
Competition law does not permit companies to collude in ways that discourage competition.
The Commission also said it was concerned “that the companies may have agreed not to poach each other’s employees.” Competition regulation prohibits such activity as it undermines competition between employers in the labour market. Delivery Hero’s minority share in Glovo could have facilitated this activity.
An in-depth investigation is to take place, but the decision to pursue a probe of Delivery Hero does not prejudice the outcome. Before the announcement, the Commission conducted surprise inspections of Delivery Hero and Glovo in June 2022 and November 2023 to investigate “possible collusion.” (July 23)
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