Our firm’s competition practice lead Henrikas Stelmokaitis persistently educates on unfair competition and represents clients in disputes regarding employee poaching. One of the most notable journals on competition law in Europe “Concurrences” published Henrikas’ article “The no-poaching law meets Article 101: where is the line?”
In the article, Henrikas emphasizes that executive Vice-President Margrethe Vestager announced a new era of cartel enforcement in October 2021. One of the new focuses is no-poaching agreements, e.g., when “no-poach” agreements are used as an indirect way to keep wages down, restricting talent from moving where it serves the economy best. This is predated by the joint guidance of October 2016 by the US Department of Justice and the Federal Trade Commission. The joint guidance states that naked wage-fixing or no-poaching agreements among employers, whether entered directly or through a third-party intermediary, are per se illegal under the antitrust laws. In light of this new trend, a question arises whether the prohibition of poaching competitors’ employees established in Article 15(1)(4) of the Law on Competition of the Republic of Lithuania still can be relied on by entities in Lithuania
The article answers whether poaching is prohibited or encouraged in Lithuania and whether balance could be found whilst applying Article 101 TFEU at the EU level.
Please find the link to the article here.