Morocco’s competition council initiates legal action against Glovo over alleged anticompetitive practices

MOROCCO – The Competition Council of Morocco has launched formal legal proceedings against GlovoApp Morocco, following allegations of anticompetitive conduct in the digital food ordering and delivery platform market.

This significant development comes after an extensive investigation, which began with a self-referral decision on February 19 last year and included a surprise inspection of Glovo’s Casablanca offices on 22 October 22 last year.

According to the Council’s findings, Glovo is suspected of abusing its dominant market position by imposing unfair commercial conditions on its partners and engaging in predatory pricing strategies.

Investigators have raised concerns that Glovo’s practices may have exploited the economic dependence of partner restaurants and delivery workers, potentially setting abnormally low prices to undercut competitors and deter new entrants to the market.

The inquiry also stems from complaints by local competitor Kooul and other restaurateurs, who allege that Glovo’s market strategies have created an uneven playing field, disadvantaging smaller players and those relying on digital platforms for their livelihoods.

The legal framework for these proceedings is grounded in Morocco’s Law No. 104-12 on freedom of prices and competition, which prohibits abuse of dominant market position and practices that distort fair competition, such as imposing unreasonable commercial terms or minimum resale prices.

The Council’s investigative team, supported by the National Brigade of the Judicial Police and authorized by the Public Prosecutor, conducted the unannounced inspection to gather evidence of potential violations.

Glovo has responded by emphasizing its full cooperation with authorities and its commitment to fair competition, transparency, and innovation.

The company maintains that no infringement has been found at this stage and that it remains dedicated to providing high service standards and respecting the rights of all stakeholders involved in Morocco’s rapidly evolving delivery sector.

The Council has clarified that the initiation of legal proceedings and the notification of grievances do not prejudge the final outcome.

The process will proceed in an adversarial manner, ensuring Glovo’s right to a fair defense and allowing the company to respond to the allegations before a final decision is reached by the Council’s board.

This case highlights broader challenges within Morocco’s digital food delivery sector, where rapid growth has brought increased scrutiny to the relationships between platforms, restaurants, and consumers.

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