The Netherlands Authority for Consumers and Markets (ACM) has initiated an investigation into an IT company suspected of entering into illegal agreements with other businesses regarding their employees. These agreements reportedly involve not actively recruiting or hiring each other's staff, which can significantly limit job-market mobility for employees.

Such agreements are considered harmful as they restrict employees' ability to switch jobs, potentially leading to lower wages and less favorable employment conditions. ACM emphasizes that a competitive job market benefits both employees and businesses, providing more options and better employment terms.

ACM has stated that any agreements between employers to refrain from hiring each other's employees are prohibited, regardless of whether they are formal or informal. While these agreements may appear to benefit businesses in the short term, they ultimately harm employees and society by stifling innovation and growth opportunities, particularly for smaller businesses.

As part of the investigation, ACM has conducted a dawn raid and requested information from the company. Over the coming months, ACM will determine whether the competition rules have been violated. If a violation is found, the company will have the chance to present its case before any sanctions are imposed.

ACM encourages anyone with information about potential competition rule violations to report it, including the option to submit tips anonymously.