Delivery Hero Exposed: EU Antitrust Authorities Uncover Massive Cartel Scandal
In a shocking revelation, Berlin-based food delivery giant Delivery Hero has been warned that it may face a whopping €400 million fine for alleged antitrust violations. The company, which has been under investigation since 2022, has been accused of engaging in cartel behavior, sharing sensitive information, and imposing "no-poach" agreements on its competitors.
According to sources close to the investigation, Delivery Hero’s aggressive expansion strategy, which included the acquisition of a majority stake in Spanish rival Glovo, was orchestrated to stifle competition and eliminate smaller players from the market. The company’s brazen tactics have left EU authorities no choice but to take drastic action.
In a statement, Delivery Hero admitted to setting aside €186 million to cover potential fines, citing "recent informal engagement with the European Commission" and "detailed analysis" as the basis for the increased provision. But will this be enough to satisfy the EU’s concerns?
The food delivery space has been plagued by consolidation, with companies like Delivery Hero and Glovo engaging in a frenzy of mergers and acquisitions to eliminate competition. But at what cost? The industry’s thin margins and high overheads have led to a string of business failures, leaving consumers with fewer options and higher prices.
As the investigation continues, one thing is clear: Delivery Hero’s alleged cartel activities have shaken the very foundations of the food delivery industry. Will the company be forced to pay the price for its questionable business practices? Only time will tell.
Author: Kayitsi.com
