Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

US adds eBay to accused firms in 'poaching' probe  Join our daily free Newsletter

MENAFN - AFP - 16/11/2012

No. of Ratings : 0
Add to Mixx!


(MENAFN - AFP) US authorities sued online retail giant eBay Friday, claiming it was part of a conspiracy with software maker Intuit to refrain from hiring each other's employees to keep salaries under control.

The civil antitrust lawsuit said eBay violated antitrust laws in an agreement not to recruit or hire Intuit employees, the Justice Department said.

The suit claims then-eBay chief executive Meg Whitman and Intuit founder Scott Cook agreed to the plan, which "deprived these employees of better job opportunities."

eBay denied any violations and pledged to contest the lawsuit.

Officials said it was not necessary to name Intuit in the complaint because the company had previously been named in a September 2010 lawsuit and settlement, which bars Intuit from entering into these types of agreements.

In the earlier case, the Justice Department's Antitrust Division filed suit against six big tech firms -- Adobe Systems, Apple, Google, Intel, Intuit and Pixar -- over a series of bilateral agreements not to solicit each other's employees.

All six companies entered into a settlement that prohibited them from these practices.

The eBay case grew out of the same investigation.

Officials said the eBay-Intuit agreement "was enforced at the highest levels of each company," and barred either firm from soliciting each other's employees, and for over a year barred eBay from hiring any Intuit employees at all.

The suit alleges that Whitman, then eBay's CEO, and Cook, Intuit's founder and executive committee chair, were "intimately involved in forming, monitoring and enforcing the anticompetitive agreement," a Justice Department statement said.

California Attorney General Kamala Harris filed a similar lawsuit in the state, saying the "handshake" hiring agreement harmed employees and competition.

"If California is going to continue to be the high-tech capital of the world, we can't allow anticompetitive conduct that prevents talent from going where it's put to its highest use," she said in a statement.

Lara Wyss, a spokeswoman for eBay, said the lawsuits "are using the wrong standard."

"We compete openly for talent in a broad, diverse global market across a range of industries and professional disciplines, and eBay's hiring practices conform to the standards that the Department of Justice has approved in resolving cases against other companies," Wyss said in a statement.

"The DOJ and state Attorney General are taking an overly aggressive interpretation in their enforcement of antitrust law in this area. eBay will vigorously defend itself."

A class-action lawsuit on behalf of affected employees is proceeding in California on the matter against Apple, Google, Pixar and others.


  MENA News Headlines




Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help