Morocco’s Competition Council has taken decisive action to limit the market dominance of Glovo, the popular food delivery platform, after determining that the company engaged in anti-competitive practices. The Council found that Glovo exploited its dominant position by imposing unfair conditions on restaurants, including exclusivity clauses that restricted them from working with other delivery platforms. This limited competition in the market and harmed both consumers and smaller competitors.
The investigation revealed that Glovo’s practices gave it undue control over pricing, visibility of restaurants on its platform, and negotiation terms, placing significant pressure on restaurant partners. The company’s dominance was particularly impactful due to its extensive market share in key Moroccan cities, giving it a near-monopoly in certain areas.
In response, the Competition Council ordered Glovo to eliminate anti-competitive clauses from its contracts and to revise its commercial practices within a defined timeline. The Council also mandated that Glovo ensure transparency and fairness in its dealings with restaurant partners going forward.
This decision marks a significant step in strengthening Morocco’s digital economy regulation and promoting fair competition. It sends a strong signal to other digital platforms operating in the country that dominance must not be abused. The ruling also provides relief to restaurants and consumers, potentially opening up the market to more players, improving service quality, and reducing delivery costs. Overall, it reflects Morocco’s growing assertiveness in regulating the digital marketplace to ensure balanced economic growth.
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