Apple, Google reportedly shared agreement to not poach employees
Apple and Google had an informal agreement not to recruit each others' workers while Eric Schmidt, the search engine's CEO, served on both boards, according to a new report.
While the agreement was not written, it was considered protocol in Google's recruitment division, sources told TechCrunch. The alleged agreement between the two companies may have sparked an antitrust investigation from the U.S. Justice Department.
Whether the unofficial rule is still in place is uncertain. Earlier this month, Schmidt stepped down from the Apple Board of Directors, citing Google's encroachment into the Mac-maker's core businesses with Android and Chrome OS. Sources told TechCrunch that it's possible that Schmidt's resignation may have signaled the end of the agreement.
"To be clear, this unwritten agreement was that Google would not go after Apple employees, and vice versa," the report states. "However, employees of both companies were free to apply to the other company on their own, we?re told. That?s a small, but important difference as the practice of going after other company?s talent, also known as ?poaching?, is considered to be an important component of healthy competition in the market. That?s why the Justice Department is looking into it."
The report also includes an e-mail from Google's hiring department that states "Google has an agreement with Apple that we will not cold call their staff."
In recent weeks, trouble has developed between Google and Apple. Weeks ago, Apple rejected the Google voice application, and pulled two programs that used the Voice service from the App Store. Both Google and Apple have been talked to for an investigation from the Federal Communications Commission over the matter.
Prior to his resignation, Schmidt already had to recuse himself from board meetings that involved iPhone plans, many of which would clash with Google's own attempts to promote its Android mobile operating system. Though the Google executive was adamant that the two companies don't occupy the same markets, the Federal Trade Commission has been investigating the Apple-Google link for a possible violation of antitrust laws through unfair collaboration.
While the agreement was not written, it was considered protocol in Google's recruitment division, sources told TechCrunch. The alleged agreement between the two companies may have sparked an antitrust investigation from the U.S. Justice Department.
Whether the unofficial rule is still in place is uncertain. Earlier this month, Schmidt stepped down from the Apple Board of Directors, citing Google's encroachment into the Mac-maker's core businesses with Android and Chrome OS. Sources told TechCrunch that it's possible that Schmidt's resignation may have signaled the end of the agreement.
"To be clear, this unwritten agreement was that Google would not go after Apple employees, and vice versa," the report states. "However, employees of both companies were free to apply to the other company on their own, we?re told. That?s a small, but important difference as the practice of going after other company?s talent, also known as ?poaching?, is considered to be an important component of healthy competition in the market. That?s why the Justice Department is looking into it."
The report also includes an e-mail from Google's hiring department that states "Google has an agreement with Apple that we will not cold call their staff."
In recent weeks, trouble has developed between Google and Apple. Weeks ago, Apple rejected the Google voice application, and pulled two programs that used the Voice service from the App Store. Both Google and Apple have been talked to for an investigation from the Federal Communications Commission over the matter.
Prior to his resignation, Schmidt already had to recuse himself from board meetings that involved iPhone plans, many of which would clash with Google's own attempts to promote its Android mobile operating system. Though the Google executive was adamant that the two companies don't occupy the same markets, the Federal Trade Commission has been investigating the Apple-Google link for a possible violation of antitrust laws through unfair collaboration.
Comments
I had hoped apple and google could do great things together. Or is all this tension a media invention ?
More likely than not.
Frankly, I've never heard of something like this being an anti-trust violation. As the article claims, Apple and Google were free to hire each others' employees if they applied.
KRR
If this is a violation of an anti-trust law, which law? AppleInsider, please do your readers a service and explain.
Frankly, I've never heard of something like this being an anti-trust violation. As the article claims, Apple and Google were free to hire each others' employees if they applied.
Anti-trust is all about allowing and even promoting competition within a market. There are likely several laws under the Anti-trust umbrella that would be potentially violated. Including but not limited to laws against one person serving on the board of two companies in the same market (which is why Schmidt left the Apple board now that Google is creating an OS), laws against overly restrictive anti-competition clauses that prohibit a worker from hiring on with another company etc.
the sticky bit is of course proof that this practice was codified in any way. even just this alleged email. otherwise it's all really hearsay. Particularly if there were persons that voluntarily applied and were hired. That at least shows that there was no practice of not hiring from each other.
Frankly I think cold calling to be tacky so I have no issue with a practice not to do it. But my opinion is not law.
Would it have been smarter if they had done a stock swap or smallish cross stock purchase? Would that have made Eric being on both boards moot?
I worked as a Google engineering recruiter for over two years and this was a WRITTEN policy. Apple was on a "no poach" list for all Google sourcers and recruiters.
Ok but if an Apple engineer came to you was he still off limits? If so then that would indeed be anti competitive.
Ok but if an Apple engineer came to you was he still off limits? If so then that would indeed be anti competitive.
Yes, that would be the work-around but we would have to reach out to our manager and get approval to speak w/any engineer whose company was on the list. I've seen folks get in trouble for ignoring this rule and just contracting them directly from an inquiry.
If you are going to quote somebody, at least have enough respect to quote them accurately.
Equally important, you have not only misquoted the author, it is out of context relative to the headline and the article, which makes it even worse.
OUCH
I fixed it
Let's not forget: amateur scholarship athletes do not have the right to even move freely among schools.
Many business have no-poaching strategies in place. Makes sense. Both for the employer or employee.
Being approached directly by a company opens yourself to the bigger payer. How many here would like it if the Yankees could just go to anybody? (Please exclude Yankee fans)
You, as an employee, have basically every right unless stipulated in your contract to approach just about anybody for a job.
Careful now. I would suggest that as an employer for, or an employee of the CIA, FBI, SEC, FCC, Homeland Security, Armed Services, etc., there are written and unwritten rules on 'poaching' that are more restrictive than what Google or Apple may have enjoyed.
Anti-trust is all about allowing and even promoting competition within a market. There are likely several laws under the Anti-trust umbrella that would be potentially violated. Including but not limited to laws against one person serving on the board of two companies in the same market (which is why Schmidt left the Apple board now that Google is creating an OS), laws against overly restrictive anti-competition clauses that prohibit a worker from hiring on with another company etc.
the sticky bit is of course proof that this practice was codified in any way. even just this alleged email. otherwise it's all really hearsay. Particularly if there were persons that voluntarily applied and were hired. That at least shows that there was no practice of not hiring from each other.
Frankly I think cold calling to be tacky so I have no issue with a practice not to do it. But my opinion is not law.
The article states there was not a prohibition from Apple and Google hiring employees from the other company. The prohibition was to not actively recruit them. It's also a stretch to say that Apple and Google are even in the same market though I suppose that is now changed with both producing a mobile phone operating system. However, Apple doesn't "sell" the iPhone OS nor does Google (but for different reasons).
What hasn't been brought up is the most likely reason this recruiting prohibition started in the first place -- to help prevent the transfer of technology between companies. There are laws against stealing technology, not just against market collusion.
OUCH
I fixed it
So did I.
Thank you.
Maybe Google would have played Android a bit differently? Developed a music store maybe?
Imagine how much turmoil there would be on the board if Google started cold-calling Apple's top talent. There would be questions and concerns about where they got their list of target employees.
Yes, that would be the work-around but we would have to reach out to our manager and get approval to speak w/any engineer whose company was on the list. I've seen folks get in trouble for ignoring this rule and just contracting them directly from an inquiry.
While we're on the subject and you seem willing to talk about it, what other companies were on that list besides Apple?