ACM launches investigation into an IT company regarding illegal agreements related to employees
Summary
- ACM suspects that an IT company has made illegal agreements with other businesses about employees.
- Agreements between employers about not approaching each other’s employees limit the job-market mobility of employees.
- Over the next few months, ACM will investigate whether this company has indeed violated the competition rules.
The Netherlands Authority for Consumers and Markets (ACM) has launched an investigation into an IT company. ACM suspects that this company has made agreements with other businesses about not actively approaching each other’s employees or hiring them. As a result of these kinds of agreements, employees are finding it more difficult to switch jobs. That leads to lower wages or less favorable terms of employment for employees.
ACM wishes to ensure that markets work well for people and businesses, now and in the future. The job market is, like other markets, a place where businesses compete with each other, for talent and craftmanship. If businesses compete freely with each other for employees, people will have more options and better chances for a job with favorable terms of employment.
Agreements regarding each other’s employees are prohibited
Agreements between employers about not approaching or hiring each other’s employees are not allowed, even if such agreements are made informally. Such agreements limit the job-market mobility of employees. In the short term, these kinds of agreements may seem to benefit businesses, but, in the long term, they harm employees as well as society. They curb innovation, reduce the incentive to make the sector efficient, and reduce growth opportunities for small businesses, which are not able to compete properly with large businesses because of these kinds of agreements. ACM sees to it that businesses do not limit employees in their freedom to switch jobs.
Next steps
ACM conducted a dawn raid, requested information, and, over the next few months, will assess whether this company has indeed violated the competition rules. In that process, ACM may also come to the conclusion that the law was not violated. If ACM does come to the conclusion that the law has indeed been violated, the company will have the opportunity to tell its side of the story. Only after that step has ACM the opportunity to impose any sanctions.
Submit a tip-off
If you have any indications that a business is violating the competition rules, please file a report with ACM. You can do so by visiting this page. You can also submit a tip-off anonymously.