US authorities have
sued online retail giant eBay Inc(NASDAQ:EBAY), over alleged breach of antitrust laws for its agreement not to recruit
software make Intuit's employees, in a bid to keep salaries restrained. The
authorities alleges that in 2007,eBay
chief executive Meg Whiteman and Intuit’s founder Scott Cook entered into
anti-poaching agreement which will deprive employees of access to better job opportunities
& salaries.
The authority further alleges that the involvement of
both the firms in forming, monitoring and enforcing anticompetitive agreement
is unlawful under the antitrust laws.
Accordingly to Joseph Wayland of US Department of Justice
antitrust division, the anti-poaching agreement by both the firms is hurting
the employees by lowering their salaries and benefits that they might have
received & depriving its employees from potential job opportunities at the
other company.
During 2006 to 2009, the complaint says the anti-poaching
agreement restricted both the companies from recruiting employees from the
other company. This anti-poaching agreement was further intensified in 2007
where it was alleged that eBay’s recruiting personnel were asked to ignore
applications from Intuit & throw away such applications.
Till now Antitrust division of US Justice department has
filed suit against Adobe systems, Apple, Google, Intel, and Intuit & Pixar
for its anti-poaching agreement.
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