Coordination in labour markets: the need for case-by-case assessments

In May 2024, the European Commission published a policy brief describing how it is likely to view wage-fixing and no-poach agreements. This policy brief reflects the increasing interest of competition authorities on labour markets. Over the past few years, competition enforcers have initiated several wage-fixing and no-poach investigations in multiple European countries. 

In an article featured in Competition Law & Policy Debate, RBB’s Nuno AlvimNuno AlvimPrincipal and Paula MäkeläPaula MäkeläAssociate Principal review the potential impacts of wage-fixing and no-poach agreements on all economic agents, including workers, employers and, crucially, consumers. They explain that although the impacts of wage-fixing and no-poach agreements on employed workers and employers are clear, their effects on consumers depend on the prevailing market conditions. They conclude that the welfare consequences of these agreements cannot be assumed but must be evaluated on a case-by-case basis using economic evidence. 

Read the full article on Elgar online here.