German online takeaway food company Delivery Hero (DHER.DE) and its Spanish counterpart Glovo faced a second round of raids on Tuesday, as European Union (EU) antitrust regulators escalated their investigation into hiring practices and information sharing.
The European Commission, in a statement, revealed that the latest raids, conducted in two EU countries, were an extension of the ones carried out in July of the preceding year. However, the commission did not disclose the names of the firms involved or specify the countries where the raids occurred, reported Reuters.
The scope of the investigation, initially focused on alleged market allocations, has now broadened to include additional concerns related to alleged “no-poach” agreements and exchanges of commercially sensitive information. “No-poach” agreements, which involve companies refraining from hiring each other’s staff or imposing restrictions on workers providing services on rival platforms, have recently become a focal point of regulatory scrutiny on both sides of the Atlantic. Such agreements are perceived as potential hindrances to fair competition within labor markets.
Related: Delivery Hero’s Glovo Fined $78M By Spain Regulator
Both Delivery Hero and Glovo confirmed the EU raids in separate statements.
Delivery Hero stated, “We can confirm that the European Commission has conducted an inspection at our offices in Berlin and Barcelona.” Meanwhile, Glovo acknowledged that the raids took place at its Barcelona offices.
The intensified investigation signals a growing concern within the EU regarding potential anticompetitive practices in the online takeaway food industry. As the antitrust regulators delve deeper into hiring practices and information sharing, the outcome of the probe could have far-reaching implications for the industry and may lead to increased scrutiny of similar practices across other sectors.
The companies under investigation, Delivery Hero and Glovo, operate in multiple countries and have a significant presence in the online food delivery market.
Source: Reuters
Featured News
Independent Pharmacies Seek Court Unification in Fight Over Generic Drug Payments
Dec 2, 2024 by
CPI
EU Drops Controversial Merger Tool Following Court Ruling
Dec 2, 2024 by
CPI
Musk Sues to Stop OpenAI, Citing Antitrust Violations and Public Harm
Dec 2, 2024 by
CPI
South Korean AI Chipmakers Rebellions and Sapeon Korea Merge to Compete Globally
Dec 2, 2024 by
CPI
Australia Proposes Fines for Big Tech to Boost Fair Competition
Dec 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Moats & Entrenchment
Nov 29, 2024 by
CPI
Assessing the Potential for Antitrust Moats and Trenches in the Generative AI Industry
Nov 29, 2024 by
Allison Holt, Sushrut Jain & Ashley Zhou
How SEP Hold-up Can Lead to Entrenchment
Nov 29, 2024 by
Jay Jurata, Elena Kamenir & Christie Boyden
The Role of Moats in Unlocking Economic Growth
Nov 29, 2024 by
CPI
Overcoming Moats and Entrenchment: Disruptive Innovation in Generative AI May Be More Successful than Regulation
Nov 29, 2024 by
Simon Chisholm & Charlie Whitehead