Tag Archives: Department of Justice

The U.S. Department of Justice reaches settlement with Apple, and five other companies

Six technology companies involved in no solicitation agreements were ordered to stop by the U.S. Department of Justice. The U.S. Department of Justice filed antitrust complaints towards Apple Inc., Google Inc., Intel Corp, Intuit Inc. and Pixar because of the no solicitation agreements that the companies took part in. The no solicitation agreements among the six companies prevented the companies from soliciting, or trying to hire each others employees by offering more money as an incentive. The agreements also prevented employees from the opportunity of having a better job at another company. Following the no solicitation agreements, the company executives at the six high-tech companies agreed not cold call each other employees. The no solicitation agreements were between Apple and Google, Apple and Adobe, Apple and Pixar, Google and Intel, and Google and Intuit.

The U.S. Department of Justice stated that the no solicitation agreements stopped competition and allowed the company to place a monopoly on their employees. The U.S. Department of Justice and the six companies had later reached a settlement. The settlement prevents the companies from making no solicitation agreements for the next five years. In general, that allows the companies to solicit freely.

I think the settlement was a good settlement. The no solicitation agreements prevented competition, which is very important by-product of capitalism. Business competition ensures that companies survive if it provides its customers with products and services that it needs. The U.S. Department of Justice is very strict on antitrust issues and I think it did the right thing. The six companies still don’t admit that they did something wrong and still insist that they made the agreements to maintain good relations with the other companies. That is still debatable. What do you think about this issue?

[Image Source]

Department of Justice to Investigate Apple iTunes Store

Department of Justice

San Jose, CA — According to many prominent news outlets, including the New York Times and CNET news, Apple is going under the microscope of the US Department of Justice regarding the pricing and promotion of digital music on Apple’s iTunes Stores.

Reports have indicated that DoJ investigators are looking into allegations that Apple used its superior market clout to pressure record labels into refusing Amazon.com exclusive access to pre-released music.

Sources told CNet that Apple threatened to pull promotion of any albums that were a part of Amazon’s “Daily Deal,” and at one point complained to Sony Music about an Amazon deal involving new music from Alicia Keys. CNet’s sources added that the the investigators are more interested in Apple’s overall place of dominance in the digital marketplace than just their issues with Amazon. CNET has more here.

According to an interview conducted by the New York Times, Daniel L. Brown, an antitrust lawyer at Sheppard Mullin Richter & Hampton was quoted as saying, “Certainly if the Justice Department is getting involved, it raises the possibility of potential serious problems down the road for Apple. Without knowing what acts or practices they are targeting, it’s difficult to say exactly how big a problem this is. But it’s probably something Apple is already concerned about.” The New York Times has more here.

According to FMQB radio news, sources noted that this inquiry is still in the very early stages, and that the DOJ often does such research before any formal investigation is launched. FMQB News has more here.