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Google, Apple and Other High-Profile Tech Companies Accused of Antitrust Violations
Employees from high-profile companies that include Google, Apple, and other highly regarded tech firms recently filed suit in California Superior Court alleging abusive labor practices.
August 13, 2011 /24-7PressRelease/ -- Antitrust laws in the United States protect the free and open market, maintaining a level playing field and healthy competition among businesses. However, recent allegations have surfaced that several major high-profile companies collaborated to circumvent market protections and keep worker wages down. A lawsuit, filed in California Superior Court in Alameda County, has since ensued.
Apple, Google, Pixar Among Those Sued in California Court
In 2009, the Department of Justice spearheaded a massive antitrust investigation focused on the labor practices of some of the nation's most well-known technology firms. Although the investigation and a related civil lawsuit were wrapped up last year, these companies may still be reaping the benefits of a pattern of anticompetitive behavior. A new civil lawsuit has since been filed.
Employees of Google, Adobe Systems, Lucasfilm, Pixar, Intel, and Apple filed suit in May of this year and seek compensation for lost wages as a result of the illegal collaboration among these tech companies.
The complaint alleges that the companies agreed to refrain from courting each other's employees and to cap salary packages for new skilled workers. The intent, according to the suit, was to keep worker compensation low in an industry where competition to recruit new talent has traditionally been fierce.
Workers Harmed
At first, the complaint alleges that only a few companies participated in the agreements, but as more firms joined in, competition for skilled workers fell, resulting in lower pay across the board.
Plaintiffs include salaried employees working at one or more of the companies between 2005 and the end of 2009. This means that thousands of individuals could eventually be included as members of a final class action suit.
Lawyers for the plaintiffs are not only seeking compensation for lost wages, but are requesting the court to triple actual monetary damages as punishment for the willful violations of employees' rights.
While the outcome of the case is far from certain, this case demonstrates that even highly respected companies are not above suspicion for abusive labor practices.
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