In a bold move to safeguard competition in the burgeoning online food delivery market, the European Commission has launched a formal antitrust investigation into two of Europe’s largest food delivery companies, Delivery Hero and Glovo. This investigation could have significant implications for consumers and workers across the European Economic Area (EEA).
What’s happening?
The European Commission is scrutinizing whether Delivery Hero and Glovo have engaged in cartel-like behavior, which includes potentially dividing up geographic markets and sharing sensitive commercial information such as pricing strategies and operational capacities. Additionally, there are concerns that the two companies may have agreed not to poach each other’s employees, a practice that could stifle job opportunities and wage growth for workers in the sector.
The Companies in Question
Delivery Hero: Headquartered in Germany, this company operates in over 70 countries and partners with more than 500,000 restaurants. It is listed on the Frankfurt Stock Exchange.
Glovo: Based in Spain, Glovo is active in more than 1,300 cities across 25 countries. In July 2022, Delivery Hero acquired a majority stake in Glovo, making it a subsidiary.
Why It Matters
The online food delivery market is rapidly growing, and ensuring fair competition is crucial for maintaining reasonable prices and diverse choices for consumers. Margrethe Vestager, the European Commission’s Executive Vice-President in charge of competition policy, emphasized the importance of this investigation:
“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.”
Background and Next Steps
The Commission’s concerns stem from Delivery Hero’s minority shareholding in Glovo from July 2018 until its full acquisition in July 2022. During this period, the companies might have engaged in practices that violate EU competition rules, specifically Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement.
The investigation follows unannounced inspections at the companies’ premises in June 2022 and November 2023. These inspections were part of a broader inquiry into potential collusion in the food delivery sector.
Implications for the Market
This investigation is particularly significant as it marks the Commission’s first formal probe into no-poach agreements and anticompetitive practices involving minority shareholdings. If the allegations are proven, it could lead to substantial changes in how companies operate within the online food delivery market, ensuring a more competitive environment that benefits both consumers and workers.
What’s Next?
The Commission will conduct an in-depth investigation, which will be prioritized but has no set deadline. The duration will depend on various factors, including the complexity of the case and the level of cooperation from the companies involved.
For those interested in the nitty-gritty details of the Commission’s actions against cartels and how to report suspicious behavior, more information is available on the Commission’s dedicated cartels website. Updates on this investigation will be posted on the Commission’s competition website under case number AT.40795.
As this investigation unfolds, it will be crucial to monitor its impact on the online food delivery market and the broader implications for competition policy in Europe. This case could set a precedent for how similar issues are handled in the future, ensuring a fair and competitive market for all.
European Parliament Convenes in Strasbourg: New President to be Elected amid Growing Diversity
On a momentous Tuesday in Strasbourg, the European Parliament, following the recent European elections held on 6-9 June, officially commenced its proceedings. The session, presided over by the outgoing EP President, Roberta Metsola of the EPP from Malta, commenced with a musical interlude before Pina Picierno, the second Vice-President in the outgoing Parliament from Italy’s S&D, announced the contenders for the coveted Presidency of the Parliament.
The highly anticipated vote, conducted through a secret paper ballot, is set to occur immediately after the inaugural session. To ensure a fair process, eight MEPs, selected by lot, will oversee the election proceedings.
The distinguished candidates vying for the Presidency are Roberta Metsola representing EPP from Malta and Irene Montero from The Left in Spain. Ahead of the crucial vote, both candidates delivered succinct statements to the plenary, outlining their visions for the future of the European Parliament.
To attain victory, a candidate must secure an absolute majority of valid votes cast, which equates to 50% plus one. In the event of no clear winner in the initial round of voting, subsequent rounds may follow with the possibility of new or existing candidates being nominated under the same stipulations. If needed, a third round could ensue with the same regulations. Should no candidate emerge victorious after the third round, the two candidates with the highest votes in this round will advance to a decisive fourth and final round, with the majority winner emerging triumphant.
Upon the election of the new President, the distinguished individual will assume the leadership position and deliver a notable opening address, setting the tone for the parliamentary term ahead.
In this landmark tenth term, the European Parliament boasts 720 seats, an increase of 15 from the previous legislature. Notably, 54% of MEPs are fresh faces, marking a slight decrease from the 2019 intake of 61%, with the representation of women comprising 39%, down marginally from the 40% mark in 2019.
Among the diverse MEP cohort, Lena Schilling, a 23-year-old from Austria representing Greens/EFA, stands as the youngest member, while the seasoned Leoluca Orlando from Italy, a Green/EFA representative aged 77, holds the distinction of the oldest MEP. The average age of MEPs stands at 50, reflecting a diverse range of experiences and perspectives within the parliamentary body.
As the tenth term commences, the European Parliament encompasses eight political groups, an increase from the previous session. Additionally, 32 MEPs remain non-attached, underscoring the dynamic landscape of political affiliations within the Parliament and highlighting the vibrant tapestry of representation in the European legislative body.
Not a single TV channel, streaming platform or cinema in Russia will show the competitions from the Summer Olympics in Paris, which begin on July 26, sports.ru writes. This happened for the first time in 40 years, when in 1984 the USSR boycotted the Olympics in Los Angeles.
The official explanation is that this time only 16 athletes will participate under a neutral flag, without an anthem and in “unpopular sports”. The unofficial thing is that this is a purely political decision of the Kremlin, and heads of federations call those who agreed to participate traitors, homeless people and foreign agents.
Paris Mayor on Russians at the 2024 Olympics: It would be better if they didn’t come
Anne Hidalgo condemned the International Olympic Committee’s decision regarding representatives of the aggressor country, she said already in March.
According to the official, it would be good if athletes from the terrorist country did not participate in international competitions.
“I prefer that they not come. We cannot act as if the invasion does not exist. We cannot act as if Putin is not a dictator who is threatening all of Europe today.”
At the same time, she added that such sanctions cannot be imposed against Israeli athletes, since Israel’s actions are different from Russia’s aggression.
“There can be no talk of imposing sanctions against Israel in connection with the Olympic and Paralympic Games. Because Israel is a democratic country,” the mayor told Reuters.
London – In a seismic shift in British politics, the Labour Party, led by Keir Starmer, has achieved a resounding victory in the UK general election, bringing an end to 14 years of Conservative governance. The results, which had been foreshadowed by months of polling, have given Labour its strongest parliamentary majority since 2001.
Labour secured an impressive 412 seats, far surpassing the 326 required for an absolute majority and more than doubling their 2019 performance. This landslide victory marks a dramatic turnaround for the party and signals a clear desire for change among the British electorate.
Upon learning of his victory in his central London constituency, Starmer declared, “The people have spoken, and they are ready for change.” This statement encapsulates the mood of a nation seemingly eager to embark on a new political chapter.
Photo credit: UK @RoyalFamily
The Conservative Party, in stark contrast, suffered its worst defeat since its founding in 1834. The Tories lost at least 250 seats compared to their 2019 performance under Boris Johnson, ending up with a mere 121 seats. This historic collapse prompted the outgoing Prime Minister, Rishi Sunak, to apologize to “those Conservatives who have lost despite their dedication” while congratulating Starmer on his victory.
The election also saw significant shifts for other parties. The Liberal Democrats, led by Ed Davey, emerged as the third-largest party with 71 seats, a gain of 63 from the previous election. The Scottish National Party (SNP) experienced a dramatic decline, securing only nine seats, a loss of 38 compared to 2019. Sinn Fein, the Irish republican party, maintained its seven seats.
Keir Starmer Secures Historic Labour Victory, Ending 14 Years of Conservative Rule in UK 3
In a surprising development, the nationalist-populist Reform UK, led by Nigel Farage, entered Parliament with four seats, exceeding all poll predictions. The Green Party quadrupled its representation, winning four seats in total.
Starmer’s first address as Prime Minister was filled with promises of change and renewal. “We did it!” he exclaimed, emphasizing that Britons would wake up to find “a weight has finally been lifted from the shoulders of this great nation.” He stressed the urgency of rebuilding trust in politics and committed to serving all citizens, regardless of their voting preferences.
The new Prime Minister outlined his government’s priorities, including improving security on streets and borders, rebuilding infrastructure, and enhancing opportunities in education and employment. “Changing a country isn’t as easy as pressing a button,” Starmer cautioned, “We will rebuild the United Kingdom, brick by brick.”
Rishi Sunak, in his farewell speech, acknowledged the clear signal for change sent by the electorate. “I have heard your anger and disappointment. I take responsibility for these results,” he stated. Sunak announced his intention to step down as Conservative Party leader, but not immediately, allowing time for a formal process to choose his successor.
The election also marked a personal triumph for Nigel Farage, who finally won a parliamentary seat on his eighth attempt, representing Clacton-on-Sea. Farage hailed his party’s performance as “extraordinary” and vowed to fill what he sees as a “huge void in the center-right.”
In regional developments, Sinn Fein became the largest Northern Irish party in the British Parliament for the first time, maintaining its seven seats while the Democratic Unionist Party (DUP) fell to four. In Scotland, the SNP lost its dominance, dropping from 48 seats in 2019 to just 8, with Labour making significant gains. Wales saw the Conservatives lose all representation, with Labour dominating the results.
As the United Kingdom enters this new political era under Starmer’s leadership, the country faces significant challenges. The incoming government must address economic concerns, social policies, and perhaps most critically, work to restore public trust in the political system. The scale of Labour’s victory suggests a strong mandate for change, but the real test lies in translating this electoral success into effective governance in the years to come.
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