Portugal’s competition watchdog has accused three beverage companies of colluding to keep workers from switching jobs, in what it says was a long-running “no-poach” scheme that may have harmed both employees and consumers.
The Competition Authority (AdC) said the companies, along with the parent company of one of them, struck agreements between 2016 and 2023 not to hire or solicit each other’s staff. A formal charge, known as a Notice of Illicitness, was issued after investigators concluded there was a reasonable chance sanctions could follow.
The probe began in January this year, when one of the companies came forward under the AdC’s leniency program, which allows firms to avoid or reduce fines if they admit wrongdoing and provide evidence.
For now, the accused companies are still presumed innocent. They will have the opportunity to respond to the allegations and present their defense before the regulator makes a final decision.
Impact on Workers and Consumers
No-poach deals, where firms agree not to compete for each other’s employees, are illegal under Portuguese competition law. Regulators say such practices hurt workers by limiting their bargaining power, suppressing wages, and restricting career opportunities.
But the effects may also reach consumers. The AdC warned that limiting competition for talent can reduce innovation, lower quality, and even push up prices in the marketplace.
A Growing Focus
This is not the first time the Portuguese regulator has targeted labor-market collusion. In 2021, the AdC published a report and good practice guide highlighting the risks of no-poach agreements and has since imposed fines in several cases. Strengthening competition in labor markets, the watchdog says, remains one of its enforcement priorities.
“Practices like these don’t just affect companies,” the AdC said. “They impact citizens directly, both as workers and as consumers.”
