Food watchdog raids delivery services across EU nations
From the informal side of the street, the EU competition authorities have been digging into some popular food delivery services across two EU member states. The reason? There's a whiff of potentially breaking EU competition law in the air, they hinted. Last July, EU investigators even paid a visit to some delivery service offices.
This time around, they're eyeing more suspected competition law breaches, like information swapping between companies. The EU Commission has officially dropped this bombshell statement, without naming the guilty parties yet. Delivery Hero and its Spanish subsidiary Glovo are among the few who confirmed last year's raids. The EU Commission can slap these companies with heavy fines—up to 10% of their annual revenue—for flouting EU competition law.
With the EU competition watchdog taking aim, food delivery services may well find themselves facing hefty penalties if they're found guilty of exchanging sensitive info, which could be a violation of competition law. The ongoing probe serves as a vital reminder to stay within legal bounds in the highly competitive food delivery market.
Insight: European competition authorities have been investigating various sectors and industries, including grocery and online food delivery platforms, for engaging in anti-competitive practices. While the specific food delivery services under investigation for potential violations through information exchange weren't disclosed, the ongoing investigation underlines the importance of compliance with competition laws.
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