EU Competition Authorities Escalate Enforcement of No-Poach Agreements

In this lawflash post, authors Christina Renner, Izzet Sinan, Jasmeen Bahous, Charles Dauthier & C. Crésence Agbattou (Morgan Lewis) discuss the European Commission’s (EC) investigation and fining of food delivery companies Delivery Hero and Glovo over alleged no-poach agreements. The EC launched a formal investigation in July 2024, following earlier raids and concerns that the two companies may have coordinated to avoid hiring each other’s employees prior to Delivery Hero acquiring full control of Glovo. These concerns stemmed from Delivery Hero’s 2018 acquisition of a minority stake in Glovo, which reportedly laid the groundwork for anticompetitive conduct.

On June 2, 2025, the EC imposed fines totaling €329 million on the two companies for engaging in a four-year cartel involving the exchange of sensitive business information, geographic market allocation, and no-poach agreements. What began as limited reciprocal no-hire clauses in their shareholder agreement allegedly evolved into a broader agreement not to solicit each other’s staff. Both companies opted to settle the case with the Commission, contributing to an unusually swift resolution by EC standards—just one year from investigation to decision.

Looking ahead, it remains unclear whether follow-on claims will emerge, though there is potential for individual employees to seek damages for lost opportunities due to the no-poach arrangement. The authors note that such actions have gained traction in the United States, where no-poach practices have faced increased legal scrutiny. This decision by the EC signals growing enforcement in labor-related antitrust matters and may set a precedent for similar actions within the EU…

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