The European Commission has launched an investigation into German online food takeaway company Delivery Hero and its Spanish unit Glovo for potential antitrust violations.

The formal antitrust investigation will assess whether Delivery Hero and Glovo have violated EU competition rules.

The probe will focus on potential cartel activities in the online food, grocery and daily consumer goods delivery services within the European Economic Area.

The commission's concerns are centred around possible market allocation and the sharing of commercially sensitive information, such as pricing and strategies.

Delivery Hero and Glovo are under scrutiny for their conduct before Delivery Hero's full acquisition of Glovo in July 2022.  

The commission suspects that the companies may have engaged in market allocation and exchanged sensitive business information, potentially facilitated by Delivery Hero's minority share in Glovo.

There are also concerns regarding agreements to avoid poaching each other's employees.

Such actions, if confirmed, would breach EU rules that prohibit cartels and restrictive business practices.

European Commission executive vice-president Margrethe Vestage said: “Online food delivery is a fast-growing sector, where we must protect competition. This is why we are investigating whether Delivery Hero and Glovo agreed to share markets and not to poach each other’s employees.

“If confirmed, such conduct may amount to a breach of EU competition rules, with potential negative effects on prices and choice for consumers and on opportunities for workers.”

Before this investigation, the EU carried out unannounced inspections at Delivery Hero and Glovo's premises in June 2022 and November 2023 as part of a broader inquiry into possible collusion within the food delivery sector.

Delivery Hero stated that it is fully cooperating with the European Commission and is committed to complying with all regulations.