In the high-stakes theatre of Moroccan food delivery, the script has taken a dramatic twist. GlovoApp Morocco, the local offshoot of the Spanish delivery giant, finds itself under renewed scrutiny, following a formal notification from the Moroccan Competition Council alleging a slew of anti-competitive sins — including the kind that would make even the most seasoned Silicon Valley disruptor blush.
The accusation? A trifecta of classic corporate overreach: abuse of dominant market position, exploitation of partners’ economic dependence, and prices so low they scream “predatory.” Glovo is being accused of breaking the very rules that govern Morocco’s liberalized market — rules that were put in place to protect consumers, encourage fair play, and, crucially, prevent precisely the kind of unchecked behavior attributed to market leaders in fast-moving sectors like digital logistics.
To be fair, Glovo isn’t named explicitly in the Competition Council’s May 28th press release. But the company has already stepped forward, confirming it is the subject of the proceedings. The timing is hardly coincidental — the notification follows a months-long investigation initiated by the Council’s Decision №20/D/2024, which included an unannounced raid on Glovo’s Casablanca offices last October. That surprise inspection, sanctioned by the Public Prosecutor and supported by the National Brigade of the Judicial Police, was anything but routine. Morocco is clearly done with politely worded letters when it comes to regulating Big Tech behavior in local markets.
For Glovo, which insists it is cooperating fully and remains committed to transparency, this latest development is a reputational headache layered on top of an already complex operating environment. The company’s press statement radiates calm professionalism, emphasizing its respect for due process, its commitment to fair competition, and its “win-win” approach to partnerships. But even the smoothest PR can’t completely mask the fact that the company is facing one of the most significant regulatory challenges in its Moroccan chapter to date.
Kooul’s Revenge?
This is not the first time Glovo has been accused of monopolistic muscle-flexing. The initial complaint that triggered the investigation reportedly came from Kooul, a local delivery platform that has struggled to compete with Glovo’s aggressive market strategy in the Moroccan market. Industry insiders suggest Kooul is playing the part of the classic underdog — a smaller, locally rooted company waving the national flag of fair play and market justice. It’s a familiar narrative: the scrappy local startup pitted against the well-funded international juggernaut.
But Kooul isn’t alone in its frustrations. Restaurateurs — arguably the lifeblood of delivery platforms — have also voiced concerns about contract terms that leave them little room for negotiation. In a market where switching platforms can mean losing up to 80% of digital revenue overnight, economic dependence becomes more than just a business term; it becomes a liability.
The Competition Council has taken notice. Under Article 7 of Law №104–12, any abuse of dominant position or of economic dependence is explicitly prohibited — particularly if it involves tactics like coercive pricing, unfair contract termination, or resale price manipulation. The Council is now in the adversarial phase of its investigation, which means Glovo will have its chance to respond in full. But the stakes are high: if found guilty, the company could face steep fines, business restrictions, or worse — long-term damage to its standing in one of North Africa’s most promising digital markets.
A Startup Champion — or a Sovereign Risk?
Ironically, this storm arrives just as Glovo was being celebrated for its role in developing Morocco’s startup ecosystem. Recently, Glovo announced its “Startup Lab” — a mentorship and internationalization program for Moroccan startups, launched in partnership with 212 Founders, Technopark, and the Mohammed VI Polytechnic University.
Eight startups, ranging from last-mile delivery innovators like VelyVelo to fintech platforms like Paylik, were selected for an immersion experience in Barcelona, complete with workshops, investor pitches, and corporate matchmaking. The program was held under the banner of Morocco’s Ministry of Digital Transition and Administrative Reform — the same government that is now grappling with Glovo’s growing footprint and potential overreach.
This dual role — as both ecosystem enabler and market hegemon — is emblematic of Glovo’s complicated relationship with the Moroccan tech scene. On one hand, it brings capital, know-how, and global connections. On the other, it plays hardball in a market that is still writing the rules of engagement. If Glovo’s price cuts are indeed below cost, or if its contracts effectively lock in partners without alternatives, then the company may have crossed the fine line between “competitive” and “crushing.”
To add to the intrigue, Glovo was recently forced to bat down rumors of a banking data breach, just as Gitex Africa was kicking off. A viral social media post alleged that users’ banking details had been compromised — a claim Glovo strongly denied, insisting its systems were secure and compliant with international PCI DSS standards. The episode, though swiftly addressed, underlined the fragile trust that underpins Morocco’s digital economy.
Will the Market Snap Back?
What happens next depends entirely on the outcome of the Council’s deliberations. Morocco’s competition law, modeled in part on EU directives, provides strong legal grounds to sanction companies found to have violated fair market conduct. But enforcement has historically been cautious. A decisive ruling against Glovo could mark a turning point — not just for the company, but for how tech platforms are governed across the region.
Still, regulators will have to tread carefully. Glovo’s presence has been a catalyst for the digitization of small restaurants and logistics operations. Over 200 million dirhams ($20M) have been invested since the company’s launch in Morocco in 2018. A regulatory overreach could chill investment or push other international players to reconsider their North African strategies.
For now, the message is clear: Morocco is no longer content with being a sandbox for tech disruption without accountability. Whether Glovo is guilty or simply a victim of its own scale remains to be seen — but the age of unregulated blitzscaling is coming to an end.