Food delivery startup Foodinho was hit with a €2.6 million (US$3.1 million) fine by Italy’s data protection watchdog following a probe of the delivery platform’s management of its 19,000 riders in the country, Reuters reported.
Based in Milan, Foodinho is owned by the food delivery startup Glovo, headquartered in Barcelona, Spain. In addition to the fine, Italy’s data protection authority Garante also ordered Foodinho to change its staff management algorithms after discovering that the company violated privacy and labor laws.
The move by the Italian authority runs parallel to the current discourse over the best way to oversee the rights of workers in the digital gig economy. The European Commission also is looking into how to apply supervision across the European Union and has launched a public consultation about the matter.
Trade unions in Italy have claimed that management algorithms on platforms outside of the region have whittled gig workers’ wages and rights. Further, there is a high demand for delivery workers due to the COVID-19 pandemic.
Garante fined Foodinho because the company allegedly did not thoroughly teach employees how its automatic order management system works. The startup was also accused of failing to ensure the accuracy of its automated processes regarding the assessment of workers’ performance.
Foodinho has 150 days to make the changes, per Reuters. Glovo will be questioned by Spain’s data authority regarding its international digital platform. A court in Spain ruled last year that Glovo workers were employees and not freelancers, while the Spanish government is proposing legislation to give unions access to the algorithms that tech companies use to manage their workforces.
Aside from food, Glovo delivers household supplies and other staples to an estimated 10 million people in 20 countries. Foodinho has approximately 19,000 delivery riders operating on its platform in Italy, TechCrunch reported.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK’s CMA Investigates Education Software Company for Market Abuse
May 14, 2024 by
CPI
Schumer Urges FTC Caution on Chevron’s $53B Hess Deal Over Gas Price Fears
May 14, 2024 by
CPI
Amazon Urges US Judge to Block FTC Probe into Data Preservation
May 14, 2024 by
CPI
Colorado Makes History: First State to Enact Comprehensive AI Legislation
May 14, 2024 by
CPI
Class Action Settlement Reached in Cheerleading Monopoly
May 14, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI