[ad_1]
Marrakech – Glovo Morocco announced today that it has reached a settlement agreement with Morocco’s Competition Council, ending the antitrust investigation into the food delivery platform’s operations in the country’s meal delivery sector.
The agreement comes after the Competition Council formally notified Glovo of alleged anticompetitive practices in May, following a surprise inspection of the company’s Casablanca offices in October 2024.
The investigation was initiated by the Council’s self-referral decision number 20/D/2024 dated February 19, 2024.
Glovo Morocco chose to settle to “continue to focus fully on its mission” of supporting partners, couriers, and customers across Morocco, according to the company’s statement.
The settlement demonstrates Glovo’s commitment to maintaining a “constructive relationship with Moroccan authorities and regulatory bodies.”
The Spanish-founded delivery platform has committed to implementing several measures to strengthen transparency and fairness on its platform in the Moroccan market.
For restaurant and café partners, Glovo pledges to modify commercial agreements by removing exclusivity clauses and publishing a detailed guide to ensure transparency in partner ranking on the app.
These initiatives aim to provide restaurant owners with a better understanding and increased visibility of how the food delivery platform functions.
For couriers, Glovo commits to establishing pioneering standards for independent platform workers in Morocco. The company will contribute an additional annual financial commitment of approximately MAD 31 million ($3.1 million) directly to self-employed couriers, subject to conditions that will be explained during implementation.
Glovo will also establish a MAD 5 million ($500,000) annual Impact Fund for couriers, dedicated to scholarships covering higher education and vocational training. The fund aims to help couriers improve their career prospects, knowledge, and skills.
The company further commits to implementing a competitive and transparent service pricing structure, promoting courier awareness of compliance with laws and regulations, and facilitating access to insurance solutions adapted to independent worker status.
Glovo will also deploy initiatives focused on professional development and the importance of road safety.
These commitments bring Glovo’s total additional financial contribution to over MAD 35 million ($3.5 million), setting “a new standard for independent platform workers in Morocco.”
A troubled spell for Glovo in Morocco
The settlement comes at a challenging moment for Glovo in Morocco. This month, delivery workers protested in Casablanca against what they claimed was a “truncated” map of Morocco on the company’s application that allegedly omitted the Sahara region, along with expressing dissatisfaction with their working conditions.
Couriers voiced concerns about bearing all operational costs themselves while earning insufficient income.
Glovo responded to these protests by explaining that the map issue was a “technical anomaly” that occurred “following a recent external update” and assured the error had been corrected.
The company insisted it operates “across the entire national territory, from Tangier to Laayoune, with full respect for the Kingdom’s territorial integrity.”
The company claimed it “has always maintained an open dialogue policy with the courier community” and stated that “in recent weeks, exchange sessions were held with a hundred couriers in Casablanca in a constructive spirit,” where Glovo presented “concrete proposals aimed at improving the couriers’ experience.”
Morocco represents Glovo’s fourth-largest market globally, with the platform working with more than 6,500 business partners and 4,500 couriers throughout the country.
Since establishing operations in Morocco, Glovo has transformed the local home delivery landscape.
Glovo Morocco states it will continue to collaborate with the Competition Council and relevant authorities to actively participate in establishing a legal framework while strengthening its competition law compliance program.
The Competition Council, headed by Ahmed Rahhou, had previously accused Glovo of abusing its dominant market position, exploiting the economic dependency of its commercial partners, and implementing unfairly low pricing strategies.
Article 7 of Law No. 104-12 on freedom of prices and competition prohibits behaviors that aim to “prevent, restrict or distort competition,” specifically forbidding the imposition of “unjustified commercial conditions” or “minimum resale prices.”
Founded in Barcelona in 2014, Glovo has rapidly expanded globally and is now owned nearly 94% by German firm Delivery Hero. The company has faced mounting criticism over its economic model based on the precarious status of delivery workers.
In June, European authorities fined Glovo €106 million for anti-competitive practices, including no-poaching agreements.
[ad_2]
Source link