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.

The Conference of European Churches (CEC) issued a statement condemning Russia’s attack on the Ohmatdet Children’s Hospital in Kyiv. Its chairman at the moment is the archbishop of Thyatira and Great Britain Nikitas (Ecumenical Patriarchate).

The text states that “… CEC unequivocally condemns the horrific attack by Russian forces against the Okhmatdet Children’s Hospital in Kyiv. This horrific act, directed against the most vulnerable members of society, constitutes a war crime and a grave violation of international law and humanitarian principles. The attack is a stark reminder of the horrors of this war and the suffering of Ukrainians.

As a church assembly, we condemn all forms of violence and aggression. Christ’s teaching calls us to love our neighbors, protect the innocent and strive for peace. The brutal attack on a children’s hospital stands in stark contrast to these core values. As part of CEC’s Pathways to Peace initiative, we emphasize the urgent need for a ceasefire in the face of such atrocities. The path to a lasting and just peace requires an end to violent aggression with the withdrawal of the invading army and compliance with international law and human rights. This is the path to sustainable peace.

We call on politicians and church leaders to hold the Russian Federation accountable for its actions. The responsibility lies not only with political leaders, but also with religious communities who must speak out against injustice and work for healing and support for those affected. The Ukrainian Council of Churches and Religious Organizations rightly holds the Russian Orthodox Church responsible, as it categorically supports the aggression of the Russian Federation against Ukraine, incites inter-ethnic and inter-confessional enmity, and preaches the godless ideology of the “Russian World”.

We encourage all European governments to provide the necessary aid and support to Ukraine, ensuring that humanitarian aid reaches those in need and that lasting peace is established.

In these difficult times, we stand with our Ukrainian brothers and sisters in praying for an end to violence and the dawn of peace. May God’s grace and compassion guide us all in our efforts to support and uplift those suffering in this conflict.”

The Conference of European Churches was the first religious Christian organization to respond to the outbreak of the war in 2022. Then-CEC president Dr. Christian Krieger addressed Russian Patriarch Kirill, saying: “Your silence disappoints and frightens.”

CEC was established in 1959, during the Cold War, and has its headquarters in Geneva, as well as representative offices in Brussels and Strasbourg. 126 Orthodox, Protestant, Anglican and Old Catholic churches from all European countries are members of the organization, as well as 43 organizations that have the status of associate members. The Roman Catholic Church is not a member of the CEC, but since 1964 it has actively cooperated with the organization. In 1997-1998 the Bulgarian Orthodox Church and the Georgian Orthodox Church, by decision of their synods, have canceled their membership in this organization, as well as in the World Council of Churches.

Brussels, [Current Date] – The European Council has chosen to extend its ranging sanctions, against Russia, for an additional six months due to the ongoing aggression and destabilizing actions by Russia in Ukraine. These measures, which were initiated in 2014 and amplified after Russia’s aggression in February 2022, will remain effective until January 31, 2025.

These sanctions are among the responses ever crafted by the EU. They cover sectors such as trade, finance, technology, dual use goods, industry, transport and luxury items. A key measure involves prohibiting the import or transfer of oil and specific petroleum products from Russia to the EU. This significantly impacts the revenue for funding military activities.

Financial Isolation and Media Restrictions

An aspect of the sanctions is isolating the economy financially. Several major Russian banks have been disconnected from the SWIFT payment system to disrupt transactions and economic stability, in Russia.
In addition, the European Union has taken action, against media outlets supported by the Kremlin that play a role in spreading information, suspending their broadcast licenses to limit the circulation of misleading narratives across Europe.

Moreover, the sanctions are crafted to be flexible and resilient against any attempts to evade them. Specific strategies have been implemented to detect and prevent any endeavors to work around the imposed limitations, ensuring that the sanctions remain effective over a period.

Continued Violations and International Law

The European Council has stressed that it is justifiable to uphold these sanctions as Russia persists in actions that violate international law, particularly regarding the prohibition on using force. These actions represent a breach of standards and responsibilities warranting an ongoing and possibly escalated response from the global community.

Historical. Broadening Measures

The initial set of sanctions began with Decision 2014/512/CFSP approved on July 31, 2014 in response to Russia’s actions in Ukraine, such as the annexation of Crimea. Over time, these measures have expanded to encompass a range. In addition to sector sanctions, the EU has imposed controls on economic dealings with Crimea, Sevastopol and areas in Ukraine’s Donetsk, Kherson, Luhansk and Zaporizhzhia regions not, under government control.

Sanctions, like freezing assets and imposing travel restrictions, have been enforced on various individuals and organizations connected to the actions.

Since February 24, 2022, the EU has implemented 14 sets of sanctions in response to Russia’s full-scale invasion of Ukraine. These actions are notably extensive and intense, reflecting the seriousness of the situation and the EU’s dedication to countering aggression.

EU’s Support for Ukraine

In its conclusions from June 27, 2024, the European Council reaffirmed its backing for Ukraine‘s independence, sovereignty and territorial integrity within recognized boundaries. The EU’s support encompasses financial, economic, humanitarian aid along with diplomatic assistance. The Council strongly condemned Russia’s escalated attacks targeting civilians and critical infrastructure like energy facilities.

The European Union’s choice to extend sanctions highlights its position against activities that threaten global peace and security. By prolonging these measures, the EU aims to maintain pressure on Russia while advocating for a resolution in line, with law.