Justice Department investigating hiring practices of Apple, others
The United States Justice Department has begun a review of the hiring practices of a number of Silicon Valley technology companies, including Apple, Yahoo, Google, and Genetech for possible anti-trust law violations.
No details have been released by the Justice Department on the exact nature of the investigation. However, the Washington Post reports that the focus of the review seems to be on any agreements that may have been made between the companies to avoid recruiting employees from each other in a bid to maintain their market power unfairly. Such arrangements would stifle competition, violating anti-trust laws.
A similar report published by the New York Times cites "people with knowledge of the inquiry " as adding a few more details, mainly that Justice Department "has issued civil investigative demands, or formal requests for documents and information, to some of the companies involved."
Apple has recently become all too familiar with this type attention from the federal government. Just last month, the Federal Trade Commission started an inquiry to evaluate the ties between its boards of directors and that of Google's, which share two common Directors.
Google?s CEO, Eric Schmidt, serves as a Director on Apple?s Board. The former CEO of Genentech, Arthur Levinson, serves as a Director on the Boards of both companies. This relationship between the two companies could be a violation of Section 8 of the Clayton Antitrust Act of 1914, according to regulators.
The Justice Department's inquiry into the hiring practices of some of Silicon Valley?s biggest names is the latest move by the Obama administration to sniff out anti-competitive behavior in the technology sector, where the highly competitive, high-stakes market for top talent has seen some companies sue their rivals for poaching employees.
No details have been released by the Justice Department on the exact nature of the investigation. However, the Washington Post reports that the focus of the review seems to be on any agreements that may have been made between the companies to avoid recruiting employees from each other in a bid to maintain their market power unfairly. Such arrangements would stifle competition, violating anti-trust laws.
A similar report published by the New York Times cites "people with knowledge of the inquiry " as adding a few more details, mainly that Justice Department "has issued civil investigative demands, or formal requests for documents and information, to some of the companies involved."
Apple has recently become all too familiar with this type attention from the federal government. Just last month, the Federal Trade Commission started an inquiry to evaluate the ties between its boards of directors and that of Google's, which share two common Directors.
Google?s CEO, Eric Schmidt, serves as a Director on Apple?s Board. The former CEO of Genentech, Arthur Levinson, serves as a Director on the Boards of both companies. This relationship between the two companies could be a violation of Section 8 of the Clayton Antitrust Act of 1914, according to regulators.
The Justice Department's inquiry into the hiring practices of some of Silicon Valley?s biggest names is the latest move by the Obama administration to sniff out anti-competitive behavior in the technology sector, where the highly competitive, high-stakes market for top talent has seen some companies sue their rivals for poaching employees.
Comments
The United States Justice Department has begun a review of the hiring practices of a number of Silicon Valley technology companies, including Apple, Yahoo, Google, and Genetech for possible anti-trust law violations.
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Watch out Silicon Valley and especially you Apple. You're favorite son's henchmen are coming for you. First the banking industry, then the Insurance industry, then the automobile industry now Silicon Valley and the Tech industry, who's next?
Is this the HOPE and Change you were expecting? Careful what you ask for, you just might get it.
Rodger
Microsoft is behind all the evil in the world.
At least it has little to do with the tech that Apple is rolling out. That sense of "anti-competitive" behaviour has been thrown out a while ago by Judge Alsop and others. It's no longer an issue, really.
I still visit Windows-therapy sites like Neowin (where Stockholm-syndrome sufferers gather) and every time there is mention of greater government or EU oversight into MS' practices (namely, IE), I see these unfortunates whining and demanding that the EU and the US investigate Apple, regarding their ownership of OS X and inclusion of Safari. It's great for a laugh. Sometimes galactic ignorance provides plenty of comic relief.
Watch out Silicon Valley and especially you Apple. You're favorite son's henchmen are coming for you. First the banking industry, then the Insurance industry, then the automobile industry now Silicon Valley and the Tech industry, who's next?
Is this the HOPE and Change you were expecting? Careful what you ask for, you just might get it.
Rodger
Uh, what are you talking about? The first three industries basically bankrupted themselves in a fit of greed, and the government saved them from themselves, and you blame the government? Then you mention the tech industry, which is completely unrelated. And, by the way, the idea of anti-trust legislation is so that companies don't ruin industries, unless you think Microsoft pushing everyone around was the tech industry's golden age.
Uh, what are you talking about? The first three industries basically bankrupted themselves in a fit of greed, and the government saved them from themselves, and you blame the government? Then you mention the tech industry, which is completely unrelated. And, by the way, the idea of anti-trust legislation is so that companies don't ruin industries, unless you think Microsoft pushing everyone around was the tech industry's golden age.
Here we go- drag Microsoft (not even mentioned in the thread) into it. So typical of the discussions around here.
Uh, what are you talking about? The first three industries basically bankrupted themselves in a fit of greed, and the government saved them from themselves, and you blame the government?
When you have all the facts the conclusion is government intervened and was the basis for this mess in the first place.
Here we go- drag Microsoft into it. So typical of the discussions around here.
It's easy. Microsoft is synonymous with corporate wrongdoing and anticompetitive practices. They were actually convicted, if you recall.
It's easy. Microsoft is synonymous with corporate wrongdoing and anticompetitive practices. They were actually convicted, if you recall.
It may be easy (easy to blame others you don't like) to include MS in this discussion, but this has nothing to do with them. Sorry fanboys. Sometimes Apple (and others) can screw the pooch on their own just fine.
Yeah, I don't believe my own headline, either. The economy's going to hell, and this is what's being done about it. Hey, let's make the strongest segment of the nation's economy spin its wheels for awhile, just because we can.
I agree that it seems like a silly thing to do.
And in related news, the Obama gov't just bought you GM, to the tune of about $30 billion.
Uh, what are you talking about? The first three industries basically bankrupted themselves in a fit of greed, and the government saved them from themselves, and you blame the government? Then you mention the tech industry, which is completely unrelated. And, by the way, the idea of anti-trust legislation is so that companies don't ruin industries, unless you think Microsoft pushing everyone around was the tech industry's golden age.
It's all about Regulation - the Democrat Congress made the regulations which began the process - so it is about government. The industries mentioned had to do what they did by law/regulation or face devestating Federal penelties and possible imprisonment.
With the Assention of the Messiah, it has become less about Regulation and more about absolute government control of business (this is the definition of fascism). {When you get a direct call from the POTUS assuring you that your headquaters will not be moved - rest assured He is your owner/boss} With the government owning the sectors previousy mentioned, the next target becomes tech. From tech they will move on to other areas to control.
Apple et al are just entities on the list. This review is just the beginning. Remember, by law the Messiah now has - should he care to use it - absolute conrol over the internet.
First not sure how Genetech fits to the list.
Next, not sure how this is anti-competitive behavior, I can see why employees would not like this since it make it hard for them to move companies if they want to.
So what if a couple companies agree not to try and recruit employee's away from each other. I am having a hard time trying to see how this harms one company over another or how the consumer is hurt by this behavior.
Grant it, I worked for a company back in 1999 that park a tour bus outside competitor companies with recruiters in it and a big sign on the outside saying "HIRING COME ON IN"
I can see how they could be wrong...
When you have all the facts the conclusion is government intervened and was the basis for this mess in the first place.
How did the government intervene in the creation and marketing of credit default swaps? Or Bernie Madoff?
Would we, arguably, have been better off if the government actually had intervened, before they became the problems they did?
I think this is a waste of taxpayer money.
It's anti-competitive in the labor market, not the end-product market. In this case it, allegedly, harms the employees by restricting their ability to command a fair-market wage. Worth looking into, and preventing if true.
Yet, this is an industry that is among the highest-paying in the country, one that is constantly complaining about not being able to find enough home-grown talent (witness all the H1Bs and US-trained foreign students working in this industry), and one whose employment continues to grow.
How can all that be the case if what you and DoJ are saying is true?
{When you get a direct call from the POTUS assuring you that your headquaters will not be moved - rest assured He is your owner/boss} ......
Ah, someone has been reading the op-ed pages of the Wall Street Journal, I see.....
How are they going to distinguish "...agreements that may have been made between the companies to avoid recruiting employees from each other in a bid to maintain their market power unfairly" from simple corporate secrecy/intellectual property protection issues?
I think this is a waste of taxpayer money.
1. issue subpeonas
2. go to companies and request a few years of emails
3. go through the emails and other documents they get
I have heard of agreements like this before. There was one similar between the main oil field services companies. It seemed to fall apart, I don't know if through legal action.
It fell apart because the government put a stop to it.
Like most employment issues, it can be complicated and the devil is in the details. However, on the surface, an agreement to not hire each others' employees would be illegal for major market players. If that is what they've done, they should be prosecuted (and fire their attorneys for letting them do it).
However, there are circumstances where it is legal, depending on the structure of the agreement, so it's impossible to say for sure without the details.