eBay settles poaching lawsuit for $3.75m

eBay, the famous e-commerce company, underwent two separate lawsuits commenced by US regulators under charges of anti-competitive hiring behavior.

The company was accused of making a pact with the technology company Intuit to not poach each others talents in a strategy meant to avoid employee salary improvement and reduce competitiveness.

Now, eBay settled the case and has to play any California employees that have worked at eBay or Intuit since 2005 a total of $3.75 million. Furthermore, the company has to refrain itself from any anti-competitive hiring behavior for a period of 5 years.

‘eBay's agreement with Intuit served no purpose but to limit competition between the two firms for employees, distorting the labour market and causing employees to lose opportunities for better jobs and higher pay,’ said DOJ assistant attorney general Bill Baer.

‘eBay continues to believe that the policy that prompted this lawsuit was acceptable and legal, and led to no anti-competitive effects in the talent market in which eBay compete,’ said eBay representatives in a statement.