Tech giants reportedly targeted in DOJ recruiting probe

Apple, Google, and Yahoo are among the tech giants being investigated by the Justice Department for possible antitrust violations related to negotiations over the recruiting and hiring of one another's employees, according to a Washington Post report.

The review is said to be "industrywide" and in preliminary stages, according to the report, which cited two unnamed sources. Companies that agree not to hire away talent could be stifling competition, the report noted.

Representatives for Apple, Google, Yahoo, and the Department of Justice did not immediately respond to requests for comment.

Tech companies, known for their exhaustive recruiting efforts, have waged fierce battles to maintain top talent. In one closely watched case, Google was sued by Microsoft in 2005 over Google's decision to hire Kai-Fu Lee away from Microsoft to run Google's research operation in China. The two parties eventually settled out of court.

IBM has proved particularly territorial about departing executives. Last month, the company filed a lawsuit in federal court to prevent its former head of mergers and acquisitions, David Johnson, from joining Dell, saying it would be a violation of his contract.

Last year, IBM sued Mark Papermaster to keep him from joining Apple. The lawsuit's claims were nearly identical, with IBM charging that Papermaster's joining Apple would cause him to divulge trade secrets and was a violation of the noncompete clause to which he agreed. IBM and Papermaster settled after three months, and Papermaster finally started working at Apple three months later.

[gbelk08]

In this economy where people are being laid off and become unemployed the next minute, it's oddly refreshing to see the brilliant engineers and employees holding power over the giant corporations.

[Drummer16161616]

People that are an asset to a company are never fired...duh

[BMG4ME]

Nice reply Drummer. I'd also reverse gbelk's claim, and say if people weren't so willing to "hold power" then perhaps companies would feel it so acceptable to lay people off. As I have said before, much hypocrisy here - employees can leave whenever they want to but employers are expected to hold jobs open for life.

[BMG4ME]

Correction to previous post: "then perhaps companies would NOT feel it so acceptable"

[CPCcurmudgeon]

Actually Drummer16161616, people who are an asset to a company can be let go under certain circumstances. They certainly can be laid off in difficult economic times, such as now. Even in a strong economy, they can be laid off after a merger or an acquisition when functions are consolidated.

[svgtom]

Actually, people who are assets to their company are quite often laid off. The problem is the upper management is usually clueless as to who does what and only pay attention to the useless people who brown nose.

[alegr]

@BMG4ME: <br />"As I have said before, much hypocrisy here - employees can leave whenever they want to but employers are expected to hold jobs open for life." <br /> <br />That's how it is there in France. No wonder they have such high unemployment.

[Vegaman_Dan]

I'm rather surprised Microsoft isn't included in those being investigated as I'm sure they are guilty of the same thing. It seems like a common business practice these days.

[ikramerica--2008]

Who says they aren't? It's industry wide. They just decided to mention Yahoo, Google and Microsoft by name for some reason.

[flhu]

With any DOJ tech sector probe, Microsoft is just a given.

[make_or_break]

MSFT seldom tries to steal away talent while the targeted person is still working for the firm in question. They DO have a habit of hiring former employees of other companies, like Jan Pederson formerly of Yahoo and Amazon's A9 search engine for specific programs like their own search program. Instead, Redmond has a more expensive habit of buying up companies and tech that they don't already have.<br /><br />The Washington Post article specifically named Google, Apple and Yahoo in their article, as well as one or two lesser firms. If indeed MSFT was also targeted in this investigation RIGHT NOW, I suspect the Post would NOT have left that out.<br /><br />What I REALLY wonder is whether firms like IBM and Microsoft--the ones who are the "victims" of key employee-filching--are actually the ones BEHIND the instigating of this investigation.

[jwant_fp]

I agree with ikramerica.

[ewwwwwwwww]

I'm so commenting omg