Last May, Google was hit with an class-action anti-trust lawsuit over several of its Android and Search practices. The case centered around the idea that Google was forcing Android handset manufacturers to make its search engine the default on all their devices, as well as pre-load apps such as YouTube. These practices, in turn, drove up the price of Android devices. Reuters reports this evening, however, that a federal judge has dismissed the lawsuit due to a lack of evidence from the plaintiffs.
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A judge has rejected a settlement that was reached earlier this year between employees of Google, Intel, Apple, and Adobe and their respective companies, CNBC reported today. According to reports from the courtroom, Judge Lucy Koh ruled that the settlement was not high enough and should actually be $380 million.
The lawsuit was brought against the tech giants in question by current and former employees who believed (correctly) that their employers had created agreements to avoid attempting to hire engineers from one another. The idea was that if no competitors were making offers, each company was free to pay its employees whatever it wanted without having to worry about them jumping ship for a better offer.
Deal: Get Pixelbook at 25% off: $750!
Class action Stories October 25, 2013
A federal judge ruled that a lawsuit against Google and several other companies can proceed as a class-action suit today after determining that a significant number of employees across the tech industry were hurt by “do-not-hire” arrangements between their employers and other companies. The policies in question were practiced by Google, Apple, Adobe, Pixar, and more as a way of keeping their own employees from defecting to competitors for higher pay. Essentially the agreements barred two companies from offering jobs to competing employees for a higher salary. Because doing so gave employees leverage with which to bargain for higher pay at their own jobs, employers were often faced with the decision to either pay any given employee more to keep them around or lose them to a competitor willing to pay more.
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Judge orders Google, Apple to face ‘no-poach’ lawsuit
Reuters reported that a judge rejected Google and Apple’s bid last night to have an antitrust lawsuit dismissed. The lawsuit claimed the companies illegally entered “no-poach” agreements in an effort to stop competitors from stealing talent:
District Judge Lucy Koh in San Jose, California, rejected the companies’ bid to dismiss claims brought under the Sherman Act and California state law, in a decision released Wednesday night. […] The proposed class action lawsuit was brought by five software engineers, who accused the companies of conspiring to depress employee pay by eliminating competition for skilled labor.
Other defendants in the case included Intel, Adobe Systems, Intuit Walt Disney Co’s Pixar, and Lucasfilm.
This Aside is cross-posted at 9to5Mac.
(Image via Zoknowsgaming)