Fair Wages, Fair Play: EU Enforces Antitrust in Labour Markets

The European Commission (EC) has recently conducted unannounced antitrust inspections in the data centre construction sector, following concerns about potential collusion in the form of no-poach agreements. This investigation comes on the heels of its Antitrust in Labour Markets policy brief, which underscores the investigative remit of the commission under the existing legal framework to prosecute wage-fixing and no-poach agreements. The EC is prioritizing enforcement actions against anticompetitive practices in labour markets. We expect to see more coordination among member states and the EC in this developing area. We outline the key aspects of the application of antitrust in labour markets, covering preliminary definitions of wage-fixing and no-poach agreements, their economic harm and legal qualification, the availability of exemption, relevant case-law at both the EU and member state levels, and final takeaways.