Supply Hero warns customers it may ultimately face a potential fine of up to €400 million from European regulators amid growing concerns over market dominance in the meal kit delivery sector.
Following reports of unannounced raids by European Union authorities at the premises of both Supply Hero and its Spanish subsidiary Glovo, the event unfolded unexpectedly in and .
The European Union did not publicly disclose the names of the companies inspected during that period, despite both parties confirming the audits had occurred. The European Commission stated it had concerns over potential breaches of competition laws regarding the formation of cartels and other anti-competitive business practices.
Supply Hero has been issued with an order on Sunday night, stating that it may be subject to sanctions for allegedly engaging in anti-competitive practices, including “anti-competitive settlements to share national markets”, exchanging sensitive commercial information, and enforcing “no-poach” agreements.
Supply Hero revealed in its latest annual report that it had provisioned €186 million following unanticipated EU inspections last year.
“The decision to prolong availability hinges on recent informal discussions with the European Fee and a thorough assessment, which justify the increased allocation.” “Supply Hero has consistently demonstrated its commitment to cooperation by fully collaborating with the European Commission, as evidenced by its proactive responses during unannounced inspections in both July 2022 and November 2023.”
The German conglomerate secured a majority stake in Glovo approximately six months after its Spanish rival had invested.
In the fiercely competitive realm of thin-margin meal supply, players have consistently sought to capitalize on fleeting market opportunities by securing top spots and optimizing their economic returns.
Since the pandemic’s onset, we’ve witnessed a troubling succession of enterprises closing their doors in response to the lockdown-related boom in meal supplies, starkly illustrating just how precarious the food supply business model truly is.
