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Investing.com -- The European Commission has imposed a fine of 329 million euros ($373.4 million) on food delivery companies Delivery Hero and Glovo due to cartel practices, according to an announcement on Monday.
This decision follows the discovery that the companies had engaged in anti-competitive behavior prior to Delivery Hero’s acquisition of a controlling stake in Glovo in 2022.
In terms of the imposed fines, Delivery Hero was hit with the larger penalty of 223.29 million euros, while Glovo was fined 105.73 million euros.
The European Union’s antitrust regulator stated that the two businesses had agreed not to poach each other’s staff, had shared commercially sensitive information, and had divided geographic markets within the EU among themselves.
These practices had been ongoing for four years, during which Delivery Hero held a minority stake in Glovo from July 2018, before taking full ownership in July 2022.
The commission expressed concern that such cartel activities can limit choices for consumers and business partners, decrease opportunities for employees, and reduce the incentive to compete and innovate.
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