Delivery Hero shares fall on EU antitrust concerns

STORY: Delivery Hero shares fell 17.4% in morning trading on Monday (July 8).

Investors were concerned after the German takeaway company warned that the European Commission could fine it more than $433 million for possible antitrust violations.

The company said on Sunday (7 July) that the potential fine would be imposed for an “alleged anti-competitive agreement involving the allocation of domestic markets, the exchange of confidential commercial information and non-takeover agreements”.

Delivery Hero said it would co-operate with the Commission’s investigation.

The company did not say when the potential fine might be imposed.

A European Commission spokesman declined to comment.

Delivery Hero representatives referred to their statement when asked about the specific reason for the potential penalty.

Sunday’s update is the latest example of European regulators’ investigation into Delivery Hero and its Spanish service Glovo.

In 2022, the Spanish Ministry of Labor fined Glovo for breaking a law requiring food delivery companies to formally employ their suppliers.

EU antitrust regulators also searched the offices of both companies last year as part of an investigation into recruitment practices and information sharing.