Automobile Dacia, Renault Technologie Roumanie among companies fined EUR 32 mln for no-poaching practices

Romania’s competition authority has fined eight companies, including Automobile Dacia and Renault Technologie Roumanie, a total of EUR 32 million for anti-competitive “no-poaching” agreements that restricted employee mobility on the labor market. The sanctions were announced by the Competition Council following an investigation into the automotive and engineering sectors.

The authority found that the firms agreed not to compete for each other’s employees and not to recruit skilled staff without prior consent, effectively dividing the labor market and keeping human resource costs artificially low.

Alongside Automobile Dacia and Renault Technologie Roumanie, the companies sanctioned are Akkodis Romania, Alten Si-Techno Romania, Bertrandt Engineering Technologies Romania, Expleo Romania, FEV ECE Automotive Romania, and Segula Technologies Romania.

Automobile Dacia received the largest fine, of more than RON 81.5 million, followed by Renault Technologie Roumanie with penalties exceeding RON 46.2 million. Overall fines total RON 163.71 million, equivalent to around EUR 32.15 million.

“This is the first case in which we are sanctioning such anti-competitive practices, where companies do not compete to attract specialized labor. Human resources represent an essential parameter of competition between companies, given the share of personnel costs in total expenses, labor shortages, and employee mobility. This type of behavior, known as ‘no-poaching,’ is particularly harmful both to competition, by creating artificial barriers on the market, and to employees, whose mobility opportunities are affected,” said Bogdan Chirițoiu, president of the Competition Council.

According to the authority, one company benefited from leniency after providing key evidence, while others received reduced fines after admitting their involvement.

As reported by Profit.ro, the Renault Group companies in Romania said they have taken note of the Competition Council’s decision regarding the sanctioning of practices investigated on the labor market. They stated that they fully cooperated with the competition authority throughout the investigation and provided all requested information “in a transparent manner and in good faith.”

(Photo source: Dacia)