Delivery Hero shares fall after €400m antitrust warning

(Bloomberg) — Shares of Delivery Hero SE fell 17% at the open on Monday, their highest since April. The company warned it faces a larger-than-expected EU antitrust fine that could top 400 million euros ($433 million).

The German food delivery company said in a statement on Sunday that it plans to “significantly increase” its corresponding reserve of 186 million euros.

Delivery Hero shares fell 14.9% to €18.49 at 9:37 a.m. Monday on the Frankfurt Stock Exchange. The company’s shares have fallen 26% this year.

The announcement follows antitrust investigations by the European Union in 2022 and November 2023, when regulators sought evidence of illegal arrangements to exchange sensitive commercial information and avoid the takeover of competitors’ employees.

The antitrust scrutiny comes at a time when the food delivery industry is facing intense competition and low profit margins.