U.S. settles with eBay over pact to not poach employees

WASHINGTON Fri May 2, 2014 12:01am IST

An eBay logo is projected onto white boxes in this illustration picture taken in Warsaw, January 21, 2014. REUTERS/Kacper Pempel/Files

An eBay logo is projected onto white boxes in this illustration picture taken in Warsaw, January 21, 2014.

Credit: Reuters/Kacper Pempel/Files

Related Topics

WASHINGTON (Reuters) - The online auction company eBay Inc has settled a lawsuit with the U.S. Justice Department by agreeing to refrain from making deals with other technology companies to not poach employees, according to court papers filed on Thursday.

In the lawsuit, filed in 2012, eBay and Intuit Inc were accused of agreeing not to recruit each others' employees, the Justice Department said in a news release.

"EBay's agreement with Intuit served no purpose but to limit competition between the two firms for employees, distorting the labor market and causing employees to lose opportunities for better jobs and higher pay," said Bill Baer, assistant attorney general for antitrust at the Justice Department.

The lawsuit, and similar legal issues involving other technology companies, highlight the intense competition for talent in Silicon Valley. In this case, a "handshake" agreement between eBay and Intuit came into place in 2006 and involved executives including then-eBay chief executive Meg Whitman and Intuit founder Scott Cook, according to court documents. At the time, Cook was serving on eBay's board and complained about eBay poaching Intuit employees. Federal and state antitrust regulators sued eBay in 2012.

Intuit was not named as a defendant because it was already part of a wide-ranging 2010 lawsuit that federal officials brought against six technology companies, including Apple and Google. Those companies settled.

EBay did not immediately respond to a request for comment.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

APPLE

A shattered large glass panel, part of Apple's cube store on Fifth Avenue, damaged from the results of the snowstorm on Tuesday is seen in New York, January 22, 2014. REUTERS/Shannon Stapleton/Files

Apple e-book settlement gets court nod

Apple Inc won preliminary court approval for its $450 million settlement of claims it harmed consumers by conspiring with publishers to raise e-book prices. In approving the accord, U.S. District Judge overcame concerns she had expressed over a settlement provision allowing Apple to pay just $70 million if related litigation were to drag out.  Full Article 

Reuters Showcase

Patent Battles

Patent Battles

Microsoft sues Samsung in U.S. over patent royalties.  Full Article 

Facebook Back Up

Facebook Back Up

Facebook restores service after outage in many countries.  Full Article 

LinkdIn Growth

LinkdIn Growth

LinkedIn's hiring business seen key to growth  Full Article 

HP Settlement

HP Settlement

Hewlett-Packard to pay $32.5 million to settle USPS pricing case  Full Article 

Digital Teleporting

Digital Teleporting

Film world's cast of toys teleport into digital playground   Full Article 

China Hacking?

China Hacking?

Hacking attack in Canada bears signs of Chinese army unit - expert  Full Article 

P2i IPO

P2i IPO

Start-up behind 'dunkable' phone technology explores Asian IPO  Full Article 

BBM for Windows

BBM for Windows

BlackBerry opens up BBM to Windows phone users  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage