Delivery Hero says it could face €400m EU antitrust fine

The Berlin-based company said it intended to “fully cooperate” with the European Commission, as it had done during previous unannounced inspections.

Delivery Hero, the German online food delivery service, said it faces a fine of more than €400 million for allegedly violating EU antitrust law.

As Delivery Hero reported in an update on its website yesterday (7 July), the allegations include an anti-competitive agreement to divide domestic markets, the exchange of confidential commercial information and non-takeover agreements.

The company said its board had decided to “significantly increase” the relevant provision already made of €186 million as a result of “unannounced inspections” carried out by the European Commission in July 2022 and November 2023.

“The intention to increase the benefit is based on the recent informal engagement with the European Commission and the subsequent detailed analysis,” the company said. “Delivery Hero intends to fully cooperate with the European Commission, as it did during the unannounced inspections.”

Shares in the public company fell more than 17 percent following the announcement, according to Reuters.

Based in Berlin, Delivery Hero was founded in 2011 and currently operates in over 70 countries across Europe, Asia, Latin America, the Middle East and Africa.

Delivery Hero has expanded its business into instant commerce, the next generation of e-commerce, aimed at delivering groceries and household goods to customers in less than an hour – often within 30 minutes.

The company welcomed a new supervisory board at its 2024 annual general meeting. The company also announced that Marie-Anne Popp has been appointed interim chief financial officer (CFO), starting this month. Popp replaces former CFO Emmanuel Thomassin, who recently resigned.

According to Statista, the global online food delivery sector was estimated to be worth over $1 trillion in 2023, with $640 billion generated in the grocery delivery segment and $390 billion in the meal delivery segment. The market is expected to generate revenues of $1.8 trillion by 2028.

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