EU hits Delivery Hero and Glovo with 329 million euros!

EU hits Delivery Hero and Glovo with 329 million euros!

EU, Belgien - The European Commission has called for a high price for contrary practices in the grocery delivery market in a groundbreaking case. The companies Delivery Hero and Glovo were borne by a total penalty of 329 million euros. Of this, 223 million euros are paid to Delivery Hero and 106 million euros on Glovo. In the past, both companies had admitted various offense offenses and agreed to a comparison, which led to a reduction in a reduction of ten percent. According to the commission's investigation, the companies had exchanged secret information over four years to hinder the competition between them.

A central element of the competitive acts was the subdivision of geographical markets and an agreement not to collect any managers from the respective rivals. It is important to note that these No-Poach agreements were only applied to administrative staff and managers, but not for the couriers. EU Competition Commissioner Teresa Ribera emphasized that this case has a signal effect for the competition authorities and marks the first time that companies were punished for such agreements. These new measures are intended to strengthen the competition on the labor market and prevent companies from making it easy to keep the best talents.

The context of no-poach agreements

no-poach agreements that are often made between competing companies have become more important in recent years, but they are under increased observation. These agreements limit the competition by preventing highly qualified employees from switching from one company to another. According to a report by Competition LAW insights, such agreements because they Eliminate the competition for skilled workers and usually lead to a reduction in wages below their market value.

The EU considers such agreements to be restricted by competition in accordance with Article 101 Tfeu. This means that the no-poach agreements of Delivery Hero and Glovo are in line with the latest political initiatives that aim to improve competitive conditions on the labor market. The EU has published a policy about antitrust in the labor market to make companies clear that these practices are unacceptable, because they not only harm the employees, but also the general economy.

The relevance for the future

With this decision, the European Commission has set a strong signal that urges both companies and competition authorities to monitor no-poach agreements more carefully. The sanctioning of Delivery Hero and Glovo is not only a punishment, but also an invitation to other companies to avoid such practices in contrast. In order to ensure betting -conscious and fair work environments, it is now crucial that such agreements will be prevented in the future.

In summary, this case shows how important it is to enforce strong rules against violations of competition. With this sanctioning, the Commission not only wanted to set up an example, but also initiated a more important dialogue about competitive and fair labor markets, which should become more important in the future.

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OrtEU, Belgien
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