The Portuguese Competition Authority (AdC) is currently investigating anticompetitive practices in the labor market involving major companies in the beverage industry. This investigation covers the period from 2016 to 2023 and has resulted in a Statement of Objections being sent to three companies, along with their parent company, due to suspected no-poach agreements.

The investigation was initiated on January 12, 2024, following a leniency application that provided evidence of these agreements. The companies involved are being given the opportunity to defend themselves against the allegations and the potential sanctions they may face.

No-poach agreements are arrangements where companies agree not to hire or solicit each other's employees. Such practices are prohibited under the Competition Act as they limit companies' ability to set their own hiring policies and can negatively impact workers by reducing their bargaining power and wages, as well as limiting their job mobility.

These agreements can also have broader implications for consumers, potentially leading to reduced innovation, lower quality, and higher prices. The AdC has previously published reports and guides to raise awareness about the harmful effects of such anticompetitive agreements in labor markets and has imposed fines in similar cases.

Enhancing awareness among stakeholders about the significance of competition in labor markets is a key priority for the AdC, as these practices directly affect both workers and consumers.