International food ordering service Delivery Hero disclosed that it could be fined more than €400 million ($433.3 million) by European enforcers over alleged agreements with other online food delivery companies to split markets, share information, and not hire workers from one another.

Delivery Hero said in a statement Sunday that it may face a "significant fine" due to alleged antitrust violations, and it intends to increase the provision it had previously earmarked for the penalty based on recent conversations with the European Commission. The company had previously set aside around €186 million for the anticipated penalty, following a pair of unannounced inspections by enforcers.

Increasing Provisions for Potential Fines

"The intent to increase the provision is based on recent informal engagement with the European Commission and subsequent detailed analysis," Sunday's statement said. "Delivery Hero intends to fully cooperate with the European Commission as it did during the unannounced inspections in July 2022 and November 2023."

The commission first launched its probe of the online food delivery sector over concerns that companies had agreed to divide national markets and later expanded the investigation to cover additional conduct. Enforcers are now also looking at potential agreements between companies to share commercially sensitive information and alleged no-poach agreements, or agreements not to hire one another's workers.

Delivery Hero Could Face €400M Antitrust Fine : Ongoing Investigation

It's not clear yet what other companies may be involved with the investigation, and enforcers have no deadline to complete the probe.

Delivery Hero, based in Berlin, operates in 70 countries with brands including Govo, foodpanda, and talabat. The company generated around €11.1 billion in revenue last year while delivering €47.6 billion in merchandise, according to its annual report.

In May, Delivery Hero struck a deal to sell its foodpanda operations in Taiwan to Uber Technologies Inc. for $950 million, marking one of the biggest international deals in Taiwan's history outside the semiconductor industry. Uber also agreed to buy $300 million of newly issued Delivery Hero shares in a separate transaction announced alongside the deal.

No Comments from Stakeholders

Representatives for Delivery Hero and the commission declined to comment Monday. The potential €400 million antitrust fine underscores the increasing scrutiny and regulatory challenges facing major players in the online food delivery sector.

With the investigation ongoing, Delivery Hero remains under the spotlight, navigating complex legal and financial waters as it continues to expand its global footprint.