Delivery Hero SE: A €329 Million Lesson in Cartel Conduct

In a striking blow to its financial standing, Delivery Hero SE, the Berlin-based giant in the Consumer Discretionary sector, has been slapped with a hefty €329 million fine by the European Union. This penalty stems from the company’s involvement in an illegal cartel with Glovo, a Spanish competitor now under Delivery Hero’s umbrella. The EU’s decision underscores a critical lesson in corporate ethics and the severe consequences of undermining competitive practices.

The Cartel’s Core: Price Fixing and Talent Hoarding

The EU Commission’s investigation revealed that Delivery Hero and Glovo engaged in anti-competitive agreements, including price-fixing and strategic collusion. These actions, which spanned from July 2018 to July 2022, not only distorted the market but also stifled innovation and consumer choice. The companies agreed not to poach each other’s employees, effectively limiting career opportunities for workers in the sector. This behavior highlights a concerning trend of prioritizing corporate interests over fair competition and employee mobility.

Financial Repercussions and Market Reaction

The fine, which includes €223 million for Delivery Hero and €106 million for Glovo, represents a significant financial setback for the company. With Delivery Hero’s stock traded on Xetra, the penalty could potentially impact investor confidence and stock performance. As of May 29, 2025, the company’s close price was €24.38, a stark contrast to its 52-week high of €42.05. This incident may contribute to further volatility in its stock price, as investors reassess the company’s risk profile in light of regulatory scrutiny.

Broader Market Context

While Delivery Hero grapples with its fine, the broader market shows mixed signals. The DAX, Germany’s leading stock index, has seen a slight dip after a strong performance in May, reflecting investor caution amidst geopolitical tensions, such as US tariff threats. Meanwhile, the MDAX, which includes Delivery Hero, ended the week slightly lower, indicating a cautious sentiment among mid-cap investors.

A Call for Corporate Responsibility

This episode serves as a stark reminder of the importance of adhering to competitive laws and maintaining ethical business practices. Companies must recognize that short-term gains achieved through collusion and anti-competitive behavior can lead to long-term repercussions, both financially and reputationally. As Delivery Hero navigates this challenging period, it must commit to fostering a culture of integrity and compliance to regain trust and ensure sustainable growth.

In conclusion, the €329 million fine against Delivery Hero and Glovo is not just a financial penalty but a wake-up call for the industry. It underscores the need for vigilance and responsibility in corporate conduct, ensuring that the market remains fair and competitive for all stakeholders involved.