Wednesday, March 26, 2025

Apple And Google Face Salary-Fixing Lawsuit

Google, Apple, Adobe and Intel - among other companies - have been accused of restricting salary increases and restricting career development by agreeing not to poach each other's staff; California District Judge Lucy Koh has found that there's enough evidence to support trial for antitrust injury. Intuit, Pixar, and Lucasfilm are also involved.

Google, Apple, Adobe and Intel – among other companies – have been accused of restricting salary increases and restricting career development by agreeing not to poach each other’s staff; California District Judge Lucy Koh has found that there’s enough evidence to support trial for antitrust injury. Intuit, Pixar, and Lucasfilm are also involved.

The agreement allegedly began with a request by the late Steve Jobs made around 2005 that the companies in question maintain a “no cold-call” policy of staff recruitment amongst themselves. Apparently Jobs threatened Palm with litigation for not entering into such an agreement with Apple.

Said Judge Koh,

The fact that all six identical bilateral agreements were reached in secrecy among seven defendants in a span of two years suggests that these agreements resulted from collusion, and not from coincidence.

Due to the sheer amount of hurdles that the case still needs to climb over, trial is only expected around June 2013.

[Source:MN]