The Competition Council of Morocco has intensified its investigation into the operations of Glovo, the Spanish food delivery giant, amidst allegations of anti-competitive practices. The inquiry centers on claims brought forward by Kooul, a local competitor in the home delivery application market. As the investigation expands, restaurateurs have also come under scrutiny, signaling a broader examination of the market dynamics.
On October 22, Glovo’s offices in Casablanca were subjected to an unannounced inspection led by the investigation and inquiry services of the Competition Council. The operation, conducted with the authorization of the Public Prosecutor and supported by the National Brigade of the Judicial Police, is part of a broader effort to enforce Morocco’s competition laws, as stipulated under Article 72 of Law 104–12 on freedom of prices and competition.
In a press release issued shortly after the raid, the Competition Council clarified that the inspection does not imply guilt. “Only the deliberative bodies of the Council are authorized to determine the veracity of the suspected practices,” the statement noted, adding that the investigation would proceed in an adversarial manner to ensure the rights of defense are upheld.
While the Council’s press release withheld the name of the company under investigation, Glovo later confirmed its involvement, stating: “At this stage, no infringement has been found. The investigation remains ongoing.” The company also emphasized its full cooperation with authorities and commitment to providing all necessary documentation.
The investigation follows accusations that Glovo engaged in practices that could unfairly limit competition in the food delivery market. Kooul, the complainant, alleges that Glovo’s market strategies have created an uneven playing field, potentially disadvantaging smaller players and restaurateurs who rely on such platforms for their livelihoods.
The inquiry is not limited to Glovo’s market conduct. Investigators are also examining the role of restaurateurs, who are seen as a vulnerable link in an industry dominated by a few key players. This approach suggests that the Competition Council is taking a comprehensive look at how the dynamics between delivery platforms and restaurants may impact competition and consumer choice.
The ongoing investigation highlights Morocco’s commitment to enforcing competition laws. Article 72 of Law 104–12 permits authorities to conduct unannounced searches and seizures to gather evidence of anti-competitive practices or failure to notify economic concentration operations — a violation known as “gun jumping.”
This legal provision hints at the importance of transparency and compliance in economic concentration activities. The Council’s ability to carry out such operations is crucial for maintaining market integrity and ensuring that companies do not bypass regulatory oversight.
The case against Glovo highlights broader challenges in Morocco ’s food delivery sector, where local and international players vie for dominance. The sector’s rapid growth has brought with it increased scrutiny, particularly regarding how platforms interact with restaurants and consumers.
For Glovo, the investigation’s outcome could have significant implications for its operations in Morocco and beyond. A ruling against the company could result in fines or operational restrictions, potentially altering the competitive landscape. Conversely, a favorable outcome might reinforce Glovo’s position in the market but could still prompt calls for regulatory reforms to address broader concerns.
As the Competition Council delves deeper into the case, industry stakeholders are watching closely. Whether the Council’s actions lead to meaningful change or further contention remains to be seen, but the case has undoubtedly brought new attention to the evolving dynamics of Morocco’s digital economy.