Tech giants Apple, Google and chip-maker Intel are negotiating with the US Justice Department in order to avoid charges related to alleged breaches of antitrust laws by agreeing not to poach staff from each other, new reports claim.
According to several reports from the Wall Street Journal and the New York Times, the investigation has gone on for at least a year, amid worries such agreements were designed to keep wages growth subdued.
The new discussions are an attempt to settle the investigation that has continued for at least a year, with Adobe, Intuit and Pixar Animation Studios also involved.
The publication reports some companies involved are “more willing to settle” to avoid an antitrust court case. If the negotiations are not successful, a lengthy court battle could begin that would have ramifications for other industries as well.
The agreements were reportedly made as an attempt to curb wages growth that occurs when Silicon Valley engineers and technicians hop from company to company, which is a common practice in the area.
The publication also reports the department has found evidence of other similar agreements in other industries, and a court case would help solidify which sectors are able to use these deals.
But despite the companies’ protests these anti-poaching deals aren’t anticompetitive, the department believes many of these deals have hurt employees’ ability to get new jobs and improve their salaries.
“[The companies] say they must be able to offer each other assurances that they won’t lure away each others’ star employees if they are to collaborate on key innovations that ultimately benefit the consumer,” the report claims.
Microsoft was part of the investigation but is no longer a target, the report claims, with Yahoo also saying it had cooperated with authorities. The department is said not to be targeting companies that have legitimate reasons for agreeing not to poach staff.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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