Chile: Complaint filed against Glovo, others, over competition violations

Chilean deputies Giorgio Jackson and Gonzalo Fuenzalida visited the National Economic Prosecutor’s Office (FNE) on July 1st, denouncing alleged crimes against competition committed by the companies GlovoApp and Delivery Hero through an illegal agreement.

In documents delivered to the head of the FNE, Ricardo Riesco, the conressmen claim that the participation of GLovo in the national market suddenly ceased in order to favor the position of Pedidos Ya and Rappi. The strategy would have been motivated by the purchase of Delivery Hero by GLOVO in 2018. Delivery Hero was also a majority shareholder in Pedidos Ya and participated as a minority shareholderin Rappi.

“We have indications that both companies reached an agreement to split up consumers,” said Fuenzalida, which also considered this a barrier to entry to new competitors. For his part, Jackson said the complaint would have been supported by the numbers revealed by Delivery Hero. The FNE will have already begun to monitor the sector, and has 60 days to carry out its investigation.

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