LinkedIn Settles Antitrust Lawsuit, Commits to Changing Contract Practices
LinkedIn has settled an antitrust case agreement which entails changing its anti-competitive contractual workings. The settlement approved by the court concerns the claims that the platform had suppressed competition. This LinkedIn antitrust settlement requires that it make immediate modifications in policy that would make the market more equitable.
Highlights
- LinkedIn will remove clauses blocking competitors from accessing public profile data.
- Third-party services must be allowed to integrate with user profiles.
- Contractual restrictions limiting user mobility are voided.
- An independent auditor will oversee compliance.
- Affected businesses can claim compensation from a $3 million fund.
The antitrust decision secures the injunctive relief against LinkedIn to prevent the relevant charges that the user agreements of the company had placed barriers to enduring competitors. Within 90 days, LinkedIn will amend these contracts to remove those elements that enabled competitors to prohibit information in the profile, which was publicly available. The settlement is not accompanied by an indication of innocence.
The most important reforms that fall under LinkedIn antitrust settlement are the introduction of user data portability and the elimination of exclusivity rules that publishers can apply to recruiters. The changes would help to raise competition among the services of professional networking. There will be an independent observer to make sure that LinkedIn keeps to these binding pledges.
It is an antitrust settlement that LinkedIn takes to escape the further litigation. It sets up a 3million dollar fund to be used by deserving businesses whose businesses suffered due to the previous practices. LinkedIn will be required to adhere to the contract changes dictated to them and this will be ensured through an independent auditor who will monitor the compliance throughout the settlement period.