Ebay settles on anti-poaching suit for $4m

E-commerce

by CBR Staff Writer| 02 May 2014

Auctioning firm reprimanded for limiting employee opportunities.

Ebay has agreed not to enter into anti-poaching agreements with competitors and to pay $4m to settle two cases filed by the US Government for restrictive practices.

The two cases, filed by the US Department of Justice (DoJ) and the Attorney General of California, pertain to eBay's agreement with Intuit not to poach each other's employees.

The DoJ filed a case in San Jose district court in 2012 saying that the agreement signed by the two companies limited their employees from pursuing better opportunities.

DoJ Antitrust Division assistant attorney general Bill Baer said: "eBay's agreement with Intuit served no purpose but to limit competition between the two firms for employees, distorting the labour market and causing employees to lose opportunities for better jobs and higher pay.

"The proposed settlement resolves the department's antitrust concerns and ensures that eBay will not engage in similar conduct in the future."

The agreement with the DoJ prevents eBay from entering into or maintaining agreements with other companies restraining employee recruitment and hiring, and awaits approval by the San Jose court.

In the settlement with the Attorney General of California, eBay agreed to pay $3.75m towards restitution payments, and $250,000 as civil penalties. The company will also provide an annual report for the next five years on any violations of the settlement.

Intuit was not included in the law suit as it was already named in another similar poaching case which also names Apple, Google, Intel and Adobe. These companies also settled their case recently.

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