On Monday, the European Union slapped the hero of delivering the German food delivery company and its Spanish gloves with a fine of 329 million euros (376 million dollars) after violating the anti -monopoly rules.
The European Union organizers concluded that Hero PHEROS has used its share in Glovo between 2018 and 2022 to reduce competition by exchanging sensitive information, agreeing to not formulate each other’s employees, and dividing the national markets among them.
Its headquarters in Germany, Delivery Hero has kept a 94 percent stake in Spain’s gloves since July 2022, but the official investigation of the European Union – which was launched last year – focuses on the period before the only control.
They are two of the largest food delivery companies in Europe, as they offer meals from restaurants, grocery shopping and other non -food products for customers at home to order through their applications or websites.
The European Commission, which works as a competition monitoring in the European Union, said that the two companies confessed to their participation in the cartel and agreed to pay fines to settle the case.
She said: “Such cartals reduce the choice of consumers and business partners, reduce employee opportunities and reduce incentives for competition and innovation.”
The committee said that the delivery champion will have to pay a fine of 223 million euros, while the glove must pay about 106 million euros.
“This situation is important because these practices have been facilitated through anti -competition use of the Glovo’s birth champion minority.”
The two companies agreed not to steal each other actively, as they initially covered the managers before extending it to all employees, including logistics experts.
Their agreement was not covered by handover drivers who were not employees at the time of violations, but they were classified as working for their own account.
The European Union’s decision is the first to find the Cartel Committee in the labor market, and Ribera said that it is “the first time that the committee has punished the non -pharmacist agreement, as companies stop competing for the best talents and reduce workers’ opportunities.”
Cartel from WhatsApp
The two companies exchanged sensitive information commercially regarding prices and costs via email as well as WhatsApp chats where, for example, officials will discuss the markets you will enter.
The committee said that the delivery champion and the Velvefo agreed to avoid entering the countries where one of the companies was already exist, and the coordination of any person should enter into the markets in which none of them were yet.
As of July 2020, the two companies completely stopped competing with each other by avoiding carefully attending the same markets, reducing the consumer choice and thus contributing to high prices.
The delivery champion confirmed that he had reached a settlement agreement with the committee in the anti -monopoly probe, saying that it had already specialized in a fine.
“Today’s settlement allows the delivery hero to address the European Commission’s concerns, while allowing the stakeholders to move forward,” he said in a statement.
Delivery Hero provides services in more than 70 countries worldwide, including 16 Economy Economic Zone (EEA) including 27 states in the European Union as well as Iceland, Liechtenstein, and Norway.
Hero Hero, which is now located in more than 20 countries around the world, including eight in the European Economic Zone.
This story was originally shown on Fortune.com
The post EU fines Delivery Hero and Glovo $376 million for running a food delivery cartel first appeared on Investorempires.com.
