Delivery Hero Warns of Hefty Fine
Delivery Hero, a Berlin-based online food delivery giant, has issued a warning to investors that it may face an antitrust penalty of up to €400 million. The European Union is investigating Delivery Hero for potential violations of competition laws.
Competition Investigation
The European Commission, the EU’s antitrust watchdog, has launched an investigation into Delivery Hero’s business practices. The investigation focuses on whether the company has engaged in anti-competitive behavior, such as:
- Abusing its market dominance
- Restricting competition by imposing exclusivity clauses on restaurants
- Hindering market entry for rival platforms
Potential Impact
If found guilty of antitrust violations, Delivery Hero could face significant financial penalties. The fine could amount to up to 10% of the company’s annual revenue, which could exceed €400 million based on its 2023 revenue forecast.
Company Response
Delivery Hero has stated that it is cooperating with the European Commission’s investigation and is committed to complying with all applicable laws. The company believes it has not violated any antitrust laws and will defend itself vigorously against the allegations.
Market Reaction
The announcement of the potential antitrust penalty has caused some uncertainty in the market. Delivery Hero’s stock price has declined in recent days, reflecting investor concerns about the potential impact on the company’s financial performance.
Implications for the Industry
The EU’s antitrust investigation into Delivery Hero is a significant development that could have implications for the entire online food delivery industry. The investigation signals the EU’s commitment to ensuring fair competition and preventing the abuse of market power.
Kind regards G. Smith
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