On 3 July 2024, the Belgian Competition Authority (“BCA”) announced its decision to impose a fine of more than EUR 47 million on Securitas, G4S and Seris. These companies took part in a cartel operating in the private security sector from 2008 to 2020. This prosecution of a cartel for no-poach agreements is a first in the application of competition law in Belgium and deserves close attention.
Monitoring no-poach agreements in the EU
For some years now, the European Commission and the national competition authorities of the Member States have been focusing their attention on a new practice in the labour sector. The practice consists of agreeing to fix (harmonise, standardise) the wages paid or the recruitment policy in relation to former or current employees of competitors, implemented via a non-solicitation agreement. This practice affects the mobility of workers on their respective labour markets and may therefore be considered illegal under competition law.
Press release issued by the BCA on 3 July 2024
The decision of the BCA to impose a fine for a no-poach agreement of this kind that infringed Belgian and European competition law sets a precedent in the field. The competing companies agreed not to hire one another’s employees. In its press release, the BCA emphasised the “unacceptable” nature of these agreements “given their adverse effects on workers and the proper functioning of the economy” (Belgian Competition Authority, Press Release no. 27/2024, 3 July 2024). This decision clearly indicates the potentially anti-competitive nature of no-poach agreements, making them an important element for companies to consider in their efforts to comply with competition law.
Other practices constituting infringements also formed part of the agreement, such as the application of , as well as agreements concerning participation in public contracts and other invitations to tender (ensuring that the same supplier would obtain the contract) and price fixing.
The infringement was established as a result of the cartel being reported and a leniency application being submitted by the participating companies. As part of the leniency programme put in place, immunity from prosecution has been granted to 11 individuals who applied for it, while proceedings are still ongoing against one individual. Full immunity has been granted to Securitas, the first company to report its involvement in the cartel under the leniency programme. G4S and Seris, which also participated in the leniency programme and helped to establish the infringement, were granted reduced fines (a 50% reduction, i.e. EUR 35,895,112, for G4S and a 40% reduction, i.e. EUR 11,200,000 for Seris).
The companies involved agreed to the terms of a settlement and thus benefited from an additional 10% reduction in their fines.
In its press release, the BCA reiterates the possibility for companies to cooperate, enabling them to obtain immunity or a reduction in the fine imposed.
