US sues eBay Inc on non-competition

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Agencies: Washington, Nov 17 2012, 13:08 IST
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both the federal and state governments ``are using the wrong standard in these matters. We compete openly for talent in a broad, diverse global market across a range of industries and professional disciplines, and eBay's hiring practices conform to the standards that the Department of Justice has approved in resolving cases against other companies.''

Several telephone messages left with Intuit's communications office were not immediately returned.

The federal lawsuit seeks to prevent eBay from enforcing the agreement and from making similar agreements with other companies.  

According to the Justice Department complaint filed in federal court in San Jose, California, the agreement was in place from 2006 to 2009. Intuit is already subject to a settlement barring it from making such agreements.

The California lawsuit would allow the state to recover damages and ensure that the companies do not engage in such conduct in the future.

California's lawsuit lists Intuit as a co-conspirator.

“If California is going to continue to be the high-tech capital of the world, we can't allow anticompetitive conduct that prevents talent from going where it's put to its highest use,'' Harris said in a statement.

eBay's revenues in 2011 were $11.7 billion. Intuit's 2011 revenues were $3.85 billion.

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