In a significant setback for Glovo, its labor practices have attracted the scrutiny of the European Commission, resulting in a substantial fine. The Spanish delivery service has been penalized for forming a cartel with its parent company, Delivery Hero, involving a 'no-poaching' agreement that restricted hiring from each other. The total fine amounts to 329 million euros, with specific penalties of 223 million euros for Delivery Hero and 106 million euros for Glovo. This penalty also addresses the exchange of sensitive commercial information between the two companies during a time when they operated independently, including details such as pricing strategies and transportation capacity. The fine was reduced by 10% as both companies acknowledged their involvement in cartel activities.

Delivery Hero's acquisition of a stake in Glovo occurred in July 2018. From then until 2022, the companies operated in ways that breached EU Competition Laws, as determined by the European Commission, which initiated its investigation in July of the previous year. Despite one company holding a significant stake in another, legal boundaries in terms of information exchange and strategic coordination remain, as they are still market competitors. These obligations ceased upon their full integration in July 2022, marking the end of the period under investigation.

While competition issues often focus on consumer impacts and pricing, this case highlights ramifications for workers. The ability to switch companies for better pay or flexible work hours is particularly vital for qualified professionals. Delivery Hero and Glovo's agreement did not affect delivery workers, known as riders, due to less competition for low-skilled positions and the nature of employment in digital delivery platforms, where riders were not considered salaried employees.

The violations also encompassed areas like sharing sensitive data between competitors regarding pricing and production capacity, and the coordination of geographic expansion strategies. For instance, Delivery Hero and Glovo competed in Bulgaria and Romania, but in other regions, market division was evident.