EU to raid data centre builders over anti-competitive practices

EU to raid data centre builders over anti-competitive practices

A yellow hardhat set in front of the flag of the EU

The European Commission will carry out unannounced inspections of companies constructing data centres as part of a potential antitrust investigation.

Unannounced inspections are only carried out as part of a preliminary investigatory step into what the EU considers to be suspected anti-competitive practices.

Subscribe today for free

Firms constructing data centres across the bloc could now have EU officials turn up at their doors unannounced to look for violations of rules relating to no-poach agreements: where companies agree not to hire or solicit each other’s employees.

European Commission officials will be conducting dawn raids alongside representatives from national competition authorities to collect information, with companies found to have violated no-poach rules could face significant fines.

Under EU antitrust rules, specifically Article 101 of the Treaty on the Functioning of the EU, such agreements are prohibited as they can reduce competition for skilled labour, restrict worker mobility, and increase costs for clients.

The Commission did not specify in what member states the action would be taking place, however, companies that come forward to disclose involvement can receive immunity or reduced fines.

Individuals, including employees aware of such practices, can also report them anonymously using the Commission’s whistle-blower tool.

The investigation is open-ended, with no legal deadline for completion, with the timeline depending on factors such as case complexity and company cooperation.

In addition to the raids, the Commission has simultaneously sent formal information requests to additional companies in the data centre construction sector, seeking more details about their activities.

RELATED STORIES

Microsoft’s got wood: Hyperscaler constructs timber-based data centres

Data centres facing cooling challenges as AI demand skyrockets

Data centres: Attracting the next generation

Gift this article