Inspectors from the Competition Council recently conducted a visit to Glovo’s headquarters in Casablanca’s Finance City. This inspection followed a complaint from Ora, a Moroccan competitor that developed the food delivery app Kooul. Ora has accused Glovo of potentially engaging in anti-competitive practices by imposing restrictive conditions on restaurants.
Sources indicate that this inspection represents a significant move by the Competition Council, as they are now keen on assessing Glovo’s compliance with Law 104-12 concerning free pricing and competition. The aim is to determine whether the company is abusing its dominant market position.
According to Article 7 of this legislation, a dominant position refers to an economic advantage that allows a company to hinder genuine competition within a specific market. Ahmed Rahhou, President of the Competition Council, refrained from providing specific details about the Glovo investigation but mentioned that a comprehensive statement will be released soon.
The investigative focus will primarily be on whether Glovo has engaged in abusive practices rather than merely holding a dominant position. This scrutiny will include examining actions such as refusing to sell, limiting sales, imposing unfair sales conditions, terminating partnerships due to unreasonable demands, or setting minimum prices for products and services either directly or indirectly.
Sources highlight that the complaint specifically pertains to the fast-food delivery sector and the interactions with restaurants. Kooul, the Moroccan company that filed the complaint, focuses on providing delivery services similar to those of Glovo, which also offers a range of products and relies on a network of 5,500 self-employed drivers across the country.
The food delivery market in Morocco has become increasingly competitive, particularly with the rise of new players since the COVID-19 pandemic.
For context, the Competition Council is a Moroccan body dedicated to analyzing market performance and addressing unethical and anti-competitive practices. Established in 2008 and having its powers expanded in 2014, the Council is currently led by Ahmed Rahhou, a former ambassador to the European Union.
