Subscribe to our newsletter and stay informed

Check out our list of top companies

Check out our carefully compiled lists of the most relevant and impactful companies within their fields.

Check out our list of top unicorns

Read and learn about the biggest companies that various countries have produced, how they made it, and what the future looks like for them.

Delivery Hero Alerts Investors to €400M Fine Risk

Delivery Hero has issued a stark warning to investors, indicating it may incur an antitrust fine as high as €400M
July 9, 2024

Berlin-based food delivery giant Delivery Hero has alerted investors about a potential antitrust penalty that could reach up to €400 million. This warning comes in response to ongoing investigations by European Union authorities, stemming from unannounced raids on Delivery Hero and its Spanish subsidiary, Glovo, in 2022 and 2023.

The European Commission has expressed concerns over possible breaches of competition laws related to allegations of market-sharing agreements, exchange of sensitive business information, and no-poach agreements. While the companies were not named initially, both Delivery Hero and Glovo confirmed the inspections took place.

In a recent investor note, Delivery Hero disclosed its provision of €186 million following the EU inspections, which it now plans to increase based on informal engagements with the European Commission and subsequent detailed analysis. The company reaffirmed its commitment to cooperate fully with authorities, a stance it maintained during previous inspections.

Delivery Hero's acquisition of a majority stake in Glovo in late 2021 has also drawn regulatory attention, reflecting the rapid consolidation within the competitive and low-margin food delivery industry. Post-pandemic challenges have intensified, with many players exiting markets and adjusting strategies as the initial surge in food delivery demand wanes.

The potential fine underscores the complexities and regulatory scrutiny facing major players in the food delivery sector, highlighting ongoing challenges in maintaining sustainable business models amid evolving market dynamics.

Last related articles

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram