Feeds

Apple, Google may end wage-capping case

We won't poach from you, or raise our staff's salaries

Designing a Defense for Mobile Applications

The Department of Justice is close to ending an investigation into several Silicon Valley giants accused of colluding to hold down staff salaries and stop recruiters calling each others' staff.

Apple and Google allegedly had an unwritten agreement not to poach each other's staff - recruitment agencies were told not to cold call anyone working for the other company. At the time of the alleged collusion Google's CEO Eric Schmidt was on the board of Apple - a situation also under investigation by the Federal Trade Commission.

The negotiations to end the probe are complex and some companies are more willing to avoid court than others, the Wall Street Journal reports.

The DoJ has been investigating Silicon Valley firms for more than a year although it believes the practices may be more widespread. Agreements varied between full no-poaching deals and simply preventing cold calling.

Other companies under the DoJ microscope include Adobe, Pixar and Intuit.

But the department believes that even vague offers from recruitment companies allow staff to improve their wages and conditions even if they do not accept such offers. The DoJ alleges that restricting such activity effectively damages people's chances of getting the best jobs, and the best wages. So the result of such unwritten deals is to artificially lower the cost of staff.

The companies accused of anti-competitive behaviour have said such agreements are necessary if they are to collaborate and work together without the fear of losing key staff.

Microsoft and IBM have both said that they are no longer being investigated by the DoJ. ®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Delaware pair nabbed for getting saucy atop Mexican eatery
Burrito meets soft taco in alleged rooftop romp outrage
LightSquared backer sues FCC over spectrum shindy
Why, we might as well have been buying AIR
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.