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.
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.