Feeds

Apple, Google may end wage-capping case

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

Intelligent flash storage arrays

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.