you are correct Longhaul, direct entry captains were employed a few years ago BUT they had to have been trained by KLS or NLS

. Many of those employed came from the likes of Denim Air and were trained by the NLS.
What is illegal is that if you have a vacancy for a job under european law you MUST accept applications from qualified candidates from within the EU. You can specify a language requirement (as LH AF and IB do).
Over the past five years the only candidates who can apply to KLM are those trained by KLS NLS or the Dutch military.