Barcelona-based delivery startup Glovo has been hit with a record-breaking €105 million fine after the European Commission allegedly uncovered its involvement in a far-reaching “cartel” alongside German counterpart Delivery Hero.
The two companies, both key players in the European food delivery market, have admitted to violating EU competition rules through coordinated anti-competitive practices lasting from 2018 to 2022.
According to the European Commission’s official statement, the collusion began shortly after Delivery Hero acquired a minority stake in Glovo. Though such ownership alone is not unlawful, the Commission determined it facilitated a string of illicit activities between the two supposed rivals. These included market-sharing agreements, coordination over territorial expansion, and, most notably, a ‘no-poach’ pact preventing either company from luring away the other’s workforce.
The Commission’s Vice President and Minister of Competition, Teresa Ribera, underscored the severity of the infringement at a press conference: “Both companies remain in their comfort zone and have no incentive to improve prices or the quality of their services.” She further emphasised the case’s groundbreaking nature, describing it as the first labour market cartel to be formally sanctioned under EU rules.
“Today, we fined Delivery Hero and Glovo a total of €329 million for participating in a cartel in the online food delivery sector. The parties agreed not to poach each other’s employees, exchanged insight information, and allocated geographic markets within the EEA. This case is important because these practices were facilitated through an anticompetitive use of Delivery Hero’s minority stake in Glovo. It is also the first time the Commission is sanctioning a no-poach agreement, where companies stop competing for the best talent and reduce opportunities for workers,” added Minister Ribera.
The cartel, sustained over four years, was allegedly executed via a combination of informal meetings and more traceable exchanges – ranging from luxury chalet discussions to detailed WhatsApp conversations. These interactions allowed Glovo and Delivery Hero to align business strategies, share confidential commercial data -such as pricing, sales strategies, and product developments – and steer clear of entering each other’s markets across the European Economic Area, which includes all EU member states plus Norway, Iceland and Liechtenstein.
Glovo, founded in Barcelona by Oscar Pierre in 2015, has faced repeated legal challenges over its employment model, particularly its controversial use of self-employed couriers. The latest antitrust decision adds to the company’s mounting legal troubles; Glovo has already been sanctioned over €200 million by Spain’s Labour Inspection for misclassifying its delivery workers.
In 2022, Glovo formally became a subsidiary of Delivery Hero following a gradual acquisition process that started in 2018.
The Commission has fined Delivery Hero €223 million, while Glovo will pay €105 million – a total of €329 million across both companies. The reduced penalties come after both firms reportedly admitted guilt and cooperated with investigators.
Minister Ribera stressed the implications of this ruling for future enforcement: “We have been clear and will continue to be clear: the European Commission will address all practices that may affect consumer rights.”
The case originated from a 2022 surprise inspection, prompted by whistleblower reports and tip-offs from national competition authorities. The investigation, now concluded, has been presented as a milestone in European regulatory oversight – marking the first time that the Commission has penalised a ‘no-poach’ agreement and a merger-facilitated cartel in the tech-enabled labour market.
For Glovo, which only recently began transitioning from its freelancer model to hiring delivery workers as employees, this penalty is both a financial and reputational blow.
As the dust settles, startups across the continent will be watching closely: this ruling may well signal a new era of scrutiny for digital platforms operating across Europe’s evolving regulatory landscape.
Read the orginal article: https://www.eu-startups.com/2025/06/glovo-and-delivery-hero-fined-e329-million-for-market-manipulation-across-europe/
