Employers beware: the Commission joins the ‘labour party’

Article
EU Law

Companies should review their recruitment and hiring policies and practices in anticipation of increased scrutiny of anti-competitive arrangements in labour markets. The European Commission has officially joined the hunt for ‘job cartels’ after identifying its first ever cartel in the labour market, and more decisions are expected.

Food for thought

According to the Commission’s press release, food delivery companies Delivery Hero and Glovo were fined EUR 329 million for allegedly:

  • agreeing not to actively approach each other’s employees (a no-poach agreement),
  • exchanging commercially sensitive information on, for instance, commercial strategies, prices, capacity, costs and product characteristics, and
  • dividing the national markets for online food delivery among themselves.

The conduct predated Delivery Hero’s full acquisition of Glovo in July 2022. At the time, Delivery Hero held only a non-controlling minority stake in Glovo. According to the Commission, this minority shareholding had facilitated coordination between the two companies by giving Delivery Hero access to commercially sensitive information and enabling the companies to align their business strategies.

This case is therefore notable not only because it is the Commission’s first ever decision on a no-poach arrangement, but also because it marks the first time the Commission has sanctioned the “anti-competitive use of a minority share in a competing business”.  

Late to the party

Although the Commission previously indicated it would take a tough stance on anticompetitive practices in labour markets (see our June 2024 newsletter), it has arrived relatively late to the labour enforcement ‘party’ with this first decision (with potentially more to follow).

National competition authorities have been paying close attention to wage-fixing and no-poach arrangements for quite some time now. Moreover, the European Court of Justice is about to shed more light on the antitrust assessment of no-poach clauses, following a Portuguese court’s request for a preliminary ruling. 

The table below provides a non-exhaustive overview of ongoing and completed competition law investigations and court rulings involving labour-related aspects across the European Union, highlighting the significant experience national competition authorities and courts have developed in this area.

 

JurisdictionYearMarket / Sector
Belgium2024Passenger transport by bus and coach
2024Professional football
2024Security services
2023Professional football
Croatia2018IT and consultancy services
2014Specialized IT support 
Czech Republic2024Unknown (potentially automotive / logistics) 
2024Direct selling & personnel service providers
2023Travel agencies
Denmark2022Inventory management
2019Ambulance driving
2008Banking
Finland2020Healthcare
2019Ice hockey
France2023Engineering, technology consulting and IT services
2023Non-ferrous metals recycling
2018Canned pre-prepared meals
2017PVC and linoleum floors
2016Modelling agencies
Germany2017Supermarkets
2016TV studio operators
Greece2022Elevator installation
Hungary2020Consulting Agencies
Italy2024Taxi drivers
2016Modelling agencies
Lithuania2022Real estate agencies
2021Basketball
Netherlands2025Healthcare
2024Media
2022Healthcare
2022Energy and engineering
2021Supermarkets
2020Publishing
2010Anaesthesiology services
Poland2024Retail transport distribution
2023Speedway racing
2022Basketball
Portugal2025Recruitment
2025Technology consulting
2024Technology consulting
2024Technology consulting
2022Clinical analysis and COVID-19 tests
2022Football
2020Football
Romania2025Dental Services
2022Motor vehicles
Slovakia2024Unknown
Spain2023Private education
2011Cosmetic products for hairdressers
2010Road transport freight forwarding
2019Industrial assembly and maintenance
Sweden2020Healthcare staff (here and here)
2012Ice hockey

Better late than never?

Although perhaps late, the Commission’s decision, once published, will be a welcome addition to the guidance on how to assess anticompetitive practices in labour markets. 

Companies should seize this opportunity to verify that their employment policies and practices comply with the antitrust rules. They should also check whether any of their minority investments in competitors or potential competitors could raise antitrust concerns.