Lucasfilm Agrees to End Anti-Competitive Practices

Studio agrees to end practice of cold calling employees at rival Pixar

The Department of Justice  has reached a settlement with Lucasfilm that prevents it from engaging in anti-competitve practices.

As part of the settlement, the department said that Lucasfilm and its rival Pixar agreed not to cold call each other’s employees and agreed to notify each other when making an offer to an employee of the other company.

The settlement also bars Lucasfilm from giving employees a counter offer that is more valuable than the competing company's offer.

The suit was filed Tuesday in U.S. District Court for the District of Columbia, along with a proposed settlement. It still needs court approval. 

Pixar was not named in the suit, because it settled similar charges last September, according to a department official. 

As part of that earlier settlement, Adobe, Apple., Google, Intel, and Intuit also agreed to end these practices. 

“The agreement between Lucasfilm and Pixar restrained competition for digital animators without any procompetitive justification and distorted the competitive process,” said Christine Varney, assistant attorney general in charge of the Department of Justice’s Antitrust Division. “The proposed settlement resolves the department’s antitrust concerns.”

  • Cameron

    How in the world is doing this “anti” competitive? Isn't legitimately competing with rivals for labor, uh, “competitive?”

    It's competition for labor that bids up the salaries of employees. Greater competition between employers = higher wages for labor.

    ENDING these practices is what's “anti-competitive.” Now both of these companies will have more leeway to pay lower than market wages to their employees; it's the companies that win in this situation, and the employees that lose. These word-gymnastics by government are unbelievable.

    • Cameron

      Scratch that. I guess the original agreement was indeed intended to stop competition, but how could an agreement like that be illegal? If anything it gives smaller rival firms that aren't part of the deal an edge on deals to siphon talent away from the big players; deals like this never last long when subjected to pressure from outside competition.

  • Pxtcody

    This sounds like the “Anti-Dog eat Dog Rule” established in “Atlas Shrugged”.
    This is BS. If these greedy bastards want socialism there are plenty of places to find it. This isn't moral high ground- it's treason.
    Free markets will only survive if they are free to compete.

    • ricknroll

      Amen pxtcody–first thing I thought about was that worm Wesley Mouch!

  • Andywebs

    This is a terrible summary. What is described as part of the resolution, is actually what they HAD been engaged in. It is all of this activity, that is now going to cease.

    Here is a good summary of what is going on:
    http://www.washingtonpost.com/wp-dyn/content/article/2010/12/21/AR2010122104099.html