CARTELS: For the first time AMO initiated an administrative proceeding in the matter of a possible cartel agreement on the labour market

On 16 May 2024 the Antimonopoly Office of the Slovak Republic (AMO) initiated an administrative proceeding in the matter of a possible agreement restricting competition by the form of a decision of an association of entrepreneurs on the labour market. Based on an investigation conducted, AMO had found that the Slovak association of entrepreneurs had adopted a Code of Ethics containing a provision that could have led to the restriction of competition on the labour market when hiring employees.

Agreements on the labour market between employers on mutual non-hiring of employees, agreements on wage determination or a decision of an association of entrepreneurs containing similar commitments may constitute a serious infringement of the Act on Protection of Competition. Such agreements can lead to the less efficient use of resources and generally have a negative impact on the working conditions of employees. At the same time, they can artificially prevent wage increases, reduce labour mobility between employers and ultimately harm the final consumer due to the limitation of the quantity and quality of goods and services offered by the employers concerned.

The initiation of the administrative proceeding does not mean that the participants to the proceeding have infringed competition rules, nor does it prejudge the conclusions that AMO can come to in its decision.