A week every two months is of course kinda extreme. But for example in my country, it's required to take 2 weeks vacations in one go every year. Another 2 weeks (or 10 work days) can be taken at employee and company discretion.

I never heard about a company/employee fined for not taking (as in, employee refusing, not company denying) vacations. It's quite frequent in small companies and/or in higher ranks actually. But theoretically it's just another labour code offense.

However, most companies have an unwritten rule to use up vacation days during the year and don't accumulate them. Unused vacations pay is due on the day of resignation. Nobody wants someone to go 10 years without vacation and then pay them nearly an annual salary in one go.