Really? That's sh!t, and most likely illegal under EU law also.
I think you're right, but I never looked into it much only know what's in my contract and that some others with a similar contract did go to work for another company in the same field....
But as I have access to every bit of data in the company except personell data, I guess they are afraid that when I leave I could do some serious damage (Well, don't have to leave for that, I can do damage now if I want to.. )