Competition and Consumer Protection Concerns Raised
Antitrust Investigation Launched
The European Commission has decided to launch an in-depth investigation into Delivery Hero and Glovo, two of the leading food delivery companies in Europe, to assess whether they have engaged in anti-competitive behavior. The investigation will focus on potential violations of Article 101 of the Treaty on the Functioning of the European Union (TFEU), which prohibits agreements between undertakings that restrict competition.
Allegations of Market Dominance
The Commission received a complaint alleging that Delivery Hero and Glovo hold dominant positions in several European markets and have abused this dominance by engaging in exclusive agreements with restaurants and unfair pricing practices. These practices may have hindered the entry and growth of competitors, ultimately harming consumers.
Investigation Scope
The Commission’s investigation will cover a range of issues, including:
– Exclusive agreements with restaurants that prevent them from partnering with other delivery services
– Pricing practices, such as predatory pricing or excessive platform fees, that may disadvantage competitors
– Possible coordination between Delivery Hero and Glovo to segment the market and limit competition
Consequences of Infringement
If the Commission finds that Delivery Hero or Glovo have violated antitrust laws, it may impose penalties of up to 10% of the companies’ annual worldwide turnover. The Commission may also order the companies to cease and desist from any anti-competitive practices and take steps to remedy the situation.
Consumer Protection
In addition to antitrust concerns, the Commission is also examining whether Delivery Hero and Glovo have violated consumer protection laws, such as by using misleading advertising or failing to provide adequate customer service.
Next Steps
The Commission’s investigation is ongoing, and it is not yet known when a final decision will be reached. However, the probe signals the European Commission’s commitment to ensuring a competitive and fair food delivery market in Europe.
Kind regards
G. Smith
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