Antitrust Scrutiny in Labor Law Agreements

Andrea Pomana, a partner in the Frankfurt office, wrote an article titled "Labor Law Agreements in the Focus of the Antitrust Authorities" in Börsen-Zeitung. The article (in German) can be found here.

The article discusses Europe's increasing enforcement of antitrust rules in employment agreements. Andrea emphasizes that no sector is immune from antitrust investigations, with labour agreements like no-poach and wage-fixing agreements being targeted. No-poach agreements are where companies agree not to hire each other's employees, and wage-fixing agreements involve employers fixing wages or benefits.

The European Commission, in its Competition Policy Brief “Antitrust in Labour Markets,” highlights concerns regarding these agreements. No-poach agreements hinder talent deployment and innovation, while wage-fixing agreements reduce labour demand and employee productivity. These agreements generally violate antitrust laws but may be allowed under strict conditions in certain cases such as mergers or research joint ventures.

Andrea concludes that European antitrust authorities are increasingly acting against such practices. She advises companies to stay informed about current developments and guidelines and stresses the importance of proper training and guidance for companies and their HR departments.