Apple Ordered to Play Nice by US Department of Justice

[Michael Essany]

There is no shortage of companies in this world that are intimidated by Apple. The US Department of Justice, however, is not among them. And, as a result, Apple has effectively received a slap on the wrist from the DOJ and ordered to stop engaging in anticompetitive practices.

Last last evening it was announced that the Cupertino-based tech giant settled with the U.S. Department of Justice following a lengthy investigation into what's being called "anticompetitive agreements." According to the Associated Press, "anticompetitive agreements" refers to "anti-poaching agreements designed to avoid costly bidding wars for star employees."

The Justice Department had been investigating whether the companies pledged not to use "cold calls" to recruit each other's employees, as part of partnership agreements. The government was concerned that such promises amounted to a form of collusion to avoid bidding wars for employees with specialized skills, and in turn hold down payroll expenses.

The DOJ determined that such agreements "eliminated a significant form of competition to attract highly skilled employees, depriving employees of access to better job opportunities." It should be noted, however, that Apple was not alone in the DOJ's ruling. Five other Silicon Valley giants also settled with the Department of Justice. They include: Adobe, Google, Intel, Intuit, and Pixar.

In terms of the "enforcement" behind this ruling.... well, there won't be much. Effectively, the companies "promise" not to engage in "no-solicitation agreements" with respect to their employees for a period of five years. So the "enforcement" will actually be a form of "self-enforcement" as the companies simply pledge to stop doing what caught the DOJ's attention in the first place.

Associated Press

[Ichwohneinloche]

About time...

[Be Expressive]

Bad Apple

[scroogelives]

Bad Apple

A bit late, apple became the new Microsoft years ago and should have been warned years ago!

[Be Expressive]

A bit late, apple became the new Microsoft years ago and should have been warned years ago!

True

[domthebigbomb]

I like how microsoft wasnt listed

[amazad]

I bet the all the people sitting in the congress have are jailbreaking their iphones ^^

[BenderRodriguez]

So what I'm understanding is that Apple was order to slow down in the computer field so that competitors can catch up? Well this sucks unless I'm reading this wrong

[DisneyRicky]

So what I'm understanding is that Apple was order to slow down in the computer field so that competitors can catch up? Well this sucks unless I'm reading this wrong

I agree! Why can't apple be ahead?!

[macsoldier]

This is just so people that have me the necessary skills to work at apple have a better chance at getting the job, im sure you ahve to know somebody that knows somebody to get in on apple ( not including working at the Apple Store) Good to see the DOJ is looking out.

[juggz143]

So what I'm understanding is that Apple was order to slow down in the computer field so that competitors can catch up? Well this sucks unless I'm reading this wrong

No Shane they were ordered to allow their employees to be 'courted' or approached by other companies who may offer them better positions or more money. Previously if an employee was found to be speaking to another company said employee was subject to disciplinary action (fired), which is not fair to said employee because he/she may miss a potential growth opportunity for them selves or be out of a job all together if they didnt get the job with the other company. It also wasn't fair to other companies who where trying to go after the best candidate when 'the best candidate' may be scared to even speak to them.

[Be Expressive]

I agree! Why can't apple be ahead?!

[BenderRodriguez]

No Shane they were ordered to allow their employees to be 'courted' or approached by other companies who may offer them better positions or more money. Previously if an employee was found to be speaking to another company said employee was subject to disciplinary action (fired), which is not fair to said employee because he/she may miss a potential growth opportunity for them selves or be out of a job all together if they didnt get the job with the other company. It also wasn't fair to other companies who where trying to go after the best candidate when 'the best candidate' may be scared to even speak to them.

Okay that makes since now wow I can't believe apple was doing that
Good job to Stop that

And who told you my first name?

[cqshe1423]

Okay that makes since now wow I can't believe apple was doing that
Good job to Stop that

And who told you my first name?

LOL! as in LOL. Isn't it obvious? It says so on your user id shanejoe

[glassJAw]

I don't believe they were ordered to slow down at competing in the computer field they were told basically to stop scouting out MVPs of other companys and convincing them to switch teams. Which I think is crap! It's no different from a professional team acquiring the best players to be the best at what they do. The idea in the business world is to make money. And having the right people to do that is just a savvy investment.

[mudrock1000]

Aw I read this thinking that they were stopping Apple from patenting anything that's anything.
Another sad day in the US patent office then.

[Rokesomesmeefer]

I don't believe they were ordered to slow down at competing in the computer field they were told basically to stop scouting out MVPs of other companys and convincing them to switch teams. Which I think is crap! It's no different from a professional team acquiring the best players to be the best at what they do. The idea in the business world is to make money. And having the right people to do that is just a savvy investment.

Umm, no, you've got it completely backwards. They were told that they cannot make deals with other companies that would PREVENT them from scouting out MVPs of other companies.

The entire issue revolved around employees being stuck at a certain pay rate because, due to agreements between the company they worked for and another, another company could not offer them more money to go work for them. This effectively capped salaries - if company A did not have to worry about losing you to company B because they had an agreement with company B that prevented them from offering you more money, company A now has no reason to offer you promotions and incentives to stay with them because there is little chance you'll find a better salary elsewhere.

It's very similar to price-fixing - for example, several electronics component manufacturers that make similar components all get together and agree to charge a standard price, preventing the build-shops from getting better deals by going with one component manufacturer over another. This allows the manufacturers to maximize profits while the build-shops make very little due to a generally higher cost for components with no cheaper alternatives.

[RICO_]

No enforcement? Take Apple's "promise" that they won't do it again? Well you can pretty much count on Apple breaking that promise. What are they gonna do? Sue them? Get in line!

Sometimes I wonder if Apple has a $100million facility dedicated solely to their lawyers to match that nice $100 million antenna testing facility.

[Jahooba]

It's kind of funny how the DOJ is taking this so seriously, and that the 5 companies in question are just so "whatever" about it. What they're doing isn't illegal, apparently, so they're not worried.

I don't really care one way or another... at this point I would be happy to work with any of those companies, even if I found out they were killing orphans and puppies and enslaving Eskimos.

[CZroe]

So what I'm understanding is that Apple was order to slow down in the computer field so that competitors can catch up? Well this sucks unless I'm reading this wrong

Fanbois need to learn how to read.

It's kind of funny how the DOJ is taking this so seriously, and that the 5 companies in question are just so "whatever" about it. What they're doing isn't illegal, apparently, so they're not worried.

I don't really care one way or another... at this point I would be happy to work with any of those companies, even if I found out they were killing orphans and puppies and enslaving Eskimos.

Then you do care because this practice was stifling them from competing to hire you.