Ebay agrees to settle DoJ case on poaching

The online auction company eBay has settled a lawsuit with the U.S. Justice Department by agreeing to refrain from making deals with other technology companies to not poach employees, according to court papers filed on Thursday.

In the lawsuit, which was filed in 2012, eBay and the financial software company Intuit were accused of agreeing not to recruit each others' employees since before 2006, the Justice Department said in a news release.

Bill Baer, the assistant attorney general in charge of the department's antitrust division, pointed out the problems with poaching restrictions.

"eBay's agreement with Intuit served no purpose but to limit competition between the two firms for employees, distorting the labor market and causing employees to lose opportunities for better jobs and higher pay," said he said in the release. "The proposed settlement resolves the department's antitrust concerns and ensures that eBay will not engage in similar conduct in the future."

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The proposed final agreement lasts for five years outside of a legal extension, court documents said.

-By CNBC.com with Reuters