May 05, 2014 Category: Commercial Litigation
The free market is an important force in helping to promote economic growth in all sectors of the economy. Competition between firms is an important aspect of a free market in Michigan or in any other state. Not only is competition between firms for market share important in keeping prices low, it is also important within the labor market to make sure wages are at a fair level. However, sometimes companies may temporarily lack good judgment and end up violating laws protecting competition in the labor market, resulting in business litigation.
This is what recently occurred with eBay, which had been facing a lawsuit filed against the company by the U.S. Department of Justice. The lawsuit alleged that the company had engaged in anticompetitive practices in its policies for recruitment of skilled workers. Fortunately, for eBay, the lawsuit was resolved in 2012 via settlement agreement with the Justice Department.
The legal dispute revolved around an agreement between eBay and a software company, Intuit. Both companies agreed to not recruit each other’s employees, which the Justice Department claimed limited competition and was a violation of antitrust laws. The settlement is now awaiting court approval; however, if it is approved, it would mean the company will be required to pay $3.5 million, which would include restitution to employees working at Intuit or eBay since 2005 who were harmed by the company’s actions.
On the other hand, many times legal disputes are not able to be settled between the parties. This means the parties will have to enter into the business litigation process in Michigan or in any other state. Therefore, it is important to have a grasp on the applicable laws in order to craft a strong legal argument. Additionally, following the correct court procedures is also essential.
Source: The Boston Globe, “Justice Department, eBay settle antitrust lawsuit“, Eric Tucker, May 2, 2014