State, feds sue eBay over hiring pact
Posted on November 16, 2012 at 23:01 PM EST
State, feds sue eBay over hiring pact California and the federal government sued online retail titan eBay Inc. on Friday under antitrust laws, saying former CEO Meg Whitman made an illegal agreement with Intuit Inc. that the two Silicon Valley companies would not recruit one another's employees. In separate lawsuits filed in U.S. District Court in San Jose, the state and federal Justice Departments accused eBay of suppressing competition and harming both companies' employees by promising in 2006 not to recruit anyone from Intuit, and agreeing a year later that it wouldn't hire anyone from Intuit. The state and federal governments are taking an "overly aggressive interpretation in their enforcement of antitrust law in this area," the company said. 'Harmed employees'The suit said the agreement, not disclosed to those it affected, "harmed employees by reducing the salaries, benefits and employment opportunities they might otherwise have earned," and "harmed the public by preventing employee mobility."