SAN JOSE, CA —A going trend in the high-tech world, Silicon Valley-based eBay plans to smash the fingers of its rival behemoth, Amazon of Seattle, with a gavel in a complaint filed about a week ago in Santa Clara County Superior Court.
The high-stakes corporate sparring resembles a spy novel. It involves an espionage-like business practice deemed by eBay as unethical and illegal. The matter is due to play out next February Superior Court when Judge Thomas Kuhnle hears the case.
In its lawsuit, the online auction and shopping company eBay accuses Amazon on five counts, including fraud, interference with contractual and economic relations, as well as violations relating to state and professional business codes.
The complaint alleges a calculated attempt since 2015 by several Amazon sales representatives in the United States and overseas to recruit eBay sellers by establishing fake member accounts that gave Amazon access to eBay’s internal “M2M” email system. That opened the door for aggressive Amazon employees working under the guise of an eBay membership to converse with eBay’s sellers, even though they had no intention of buying or selling anything on the platform, eBay management contends.
“Amazon’s misuse of eBay’s M2M system has been coordinated, targeted and designed to inflict harm on eBay. Indeed, one of the Amazon sales representatives who participated in this scheme described the team he worked on as a ‘hunter/recruiter team which actively searches for sellers we believe can do well on the (Amazon) platform,’ ” the complaint reads.
It adds that “its representatives opened eBay accounts with no intent of ever using them to conduct legitimate business on eBay’s platform.”
According to eBay, one Seattle-based Amazon representative opened three accounts in the course of a few weeks, sending solicitation emails to eBay sellers within minutes of opening each separate account.
Here’s an example of a pitch from an Amazon representative to an eBay seller brought in as evidence:
“Hi there, Hope you are well! I manage the apparel category at Amazon and came across you guys with a really cool selection. I was curious to see — have you looked at selling on Amazon? Because this is a personal invite, I could get you up and running quickly, opening you up to a whole new audience for you guys. Let me know your thoughts and if you’d like my help in getting started!”
Ironically, the case also notes Amazon with its parent company in Delaware has its own rules on use of its platform to prevent “the same misconduct Amazon perpetrated on eBay’s platform,” the plaintiff contends. The policy reads: “Any attempt to circumvent the established Amazon sales process or to divert Amazon users to another website or sales process is prohibited.”
Amazon spokeswoman Maxine Tagay declined to comment on the lawsuit.
The question for the court to decide: Was Amazon just being aggressive or did it go too far?
Either way, Silicon Valley recruiter Shawn Desgrosellier told Patch this type of behavior is “a way of life,” and he could have predicted an illegal accusation landing two companies in court. The practice of assertively wooing someone who works for or is a part of a rival company is becoming more prevalent — and more lucrative.
“I know a guy who could pay for a kitchen remodel with a collection of referral fees,” the Vitality recruiter said. Desgrosellier’s company recruits people in the construction and real estate industries who build high tech firms.
Companies, especially those in the South Bay, offer handsome bonuses to employees who bring on valuable talent. It’s like an extra source of income. Desgrosellier, who’s been a recruiter for 25 years, said bonuses can range from $1,000 to $50,000. He was aware of one that reached $75,000.
“I’m not surprised. This is such a competitive marketplace, and companies are more inclined to just deal with the consequences,” he said.
“It’s really a cultural issue,” the recruiter said.
Penetrating a company’s internal communications system may be a step up from the normal, pro-active wooing, he added. In this case, Amazon was allegedly going after eBay’s sellers who act as members with accounts.
The eBay versus Amazon matter isn’t the only such case where questionable practices may exist.
In one that involves a competitor going after another’s staff, Viacom — a New York-based telecom giant — has joined a legal battle against Netflix over its hiring practices, according to Variety. The suit filed in Los Angeles County Superior Court accuses the Los Gatos-based streaming service of poaching a high level television production executive when it skimmed off Momita SenGupta as its vice president of physical production after she had been with Viacom for a decade, the entertainment trade magazine added.
— Image via Shutterstock
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