By Edith Hancock

The European Union's antitrust enforcer said it raided companies in the data center construction sector over concerns they may have broken EU rules governing how staff are hired.

The European Commission said Monday that it raided and sent questionnaires to data center construction groups to check whether they entered into no-poach agreements--contracts that prevent them from recruiting key staff from competitors.

Wage-fixing and no-poach agreements are prohibited under EU law unless companies can prove they can bolster competition in a particular sector.

The commission didn't name the companies it had targeted.

The commission said its officials worked with counterparts from national competition authorities in the bloc to carry out the raids. Companies that have broken the EU's cartel rules can avoid a fine or have their penalty reduced if they come forward with information, the watchdog said.

EU antitrust officials signaled a new focus on companies' hiring practices last summer, opening an investigation into food delivery companies Delivery Hero and its subsidiary Glovo in July, in part over fears they may have agreed not to poach each others' employees.

Write to Edith Hancock at edith.hancock@wsj.com

(END) Dow Jones Newswires

November 18, 2024 11:17 ET (16:17 GMT)

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