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"Guys, we have a problem," Ballmer says. "Soms of our best employees are job-hopping like locusts, feasting on the highe wages and better perks from ourcompetitors -- that woulde be you. Now I know we've gone on plentt of raiding parties ourselves. But it's just time to stop the I'm ready to reachg a gentlemen's agreement not to poach your superstarzif you'll do likewise." Jobs doesn't hesitate. "I'm tired of payinh moving expensesfrom Redmond. And it's gettinv old hearing some of my employees whininfg about how great the perks were when they wereat I'm all for a change." The Google guys speakl in unison: "Count us in!
" The specific meetinf we described, of course, took placse only in our imagination. But the reportedly want to knowif tech's big boys really have been colludinfg to keep their top talent from jumping The and , citing unname d sources, report that the investigation is preliminaruy and focuses on a who’sx who of Silicon Valley tech companie including search giant Google, its rival , iPhone make Apple and biotech firm . reports that the Justics Department has issued formal requestzs for documentsfrom “at least a tech companies.
“If they are as is being investigated then it is a seriouspotential anti-trus case,” said Albert Foer, presidenrt of the American Antitrust Institute. Collusion betweenn the companies could depress In 2001, Supreme Court nominee Judge Soniwa Sotomayor wrote an appeals court opiniojn siding with a group of oil geologistd and petroleum engineers who claimed and other oil companiexs were colluding in hiring decisions. Collusion couls also damage the innovation for which Siliconb Valleyis famous, by keeping talented people from movinb to new companies and bringing with them fresh ideas.
“One of the things that feedzs innovation is peoplemoving around,” Foer “Whereas Silicon Valley is famous for peopld moving around … that practice would be tailing off or endeed by such an agreement,” betweebn companies not to poach talent. While the tech world may be famouds for talented people jumping from company to thosejumps haven’t always been exactlyh amicable, and tech firms often tie top talent to contractsx that restrict them from going to work for the competition for set periodss of time.
In fact, the moves of talent from one tech behemothy to another have sometimes landecdin court, as when former Microsoft employee Kai-Fu Lee went to work for John Oates points out at . So it’ds not out of the realm of reaso n to imagine tech bosses looking to keep top talenf from moving without the hassles ofcourt fights. But already, the federal probe is drawintg skepticism inthe blogosphere. Larry Dignan, writingv on ZDNet’s blog, callxs the probe a fishing expeditionwith “waste of time writtejn all over it.
” As Dignan points out, it’s pretty unlikely that there are any smokin gun agreements lying around the offices of the tech and he adds: “Top talenyt isn’t that restricted. Googlse execs go to Facebook. They go to AOL. Yahoo exec s go to Microsoft. Microsoft execs go to In fact, you can make quite a career just hopping betweehn thoseaforementioned companies.” The probe comes as the governmeng is stepping up scrutiny of the often-cozy relationships in the high-tech sector. Assistant Attorney General Christiner Varney, who is in charge of the DOJ'sa Antitrust Division, that the department would be takiny a closer look at activities inthe industry.
The Federal Trade Commission to Google earlier in the year becaus ofantitrust concerns. FTC questions concerned the overlapo of directors between Google andGenentech — Google boss Eric Schmidt sits on the Appl e Inc. board with Art Levinson, who was CEO of Genentecbh at the time. Regulators also callef a halt to an advertisintg revenue sharing deal Google madewith Yahoo.
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