Amazon.com, Inc (NASDAQ AMZN) has filed a lawsuit against a former employee Zoltan Szabadi for accepting the job with Google Inc (NASDAQ GOOG). Amazon filed a lawsuit in Seattle, Washington claiming that Szabadi’s acceptance to take a job in Google somehow breached the contract he signed with Amazon, according to various sources.
Amazon has yet again dragged a former employee, who joined Google recently, to court accusing him of breaching the employment terms. The case comes in the wake of fiercely increasing competition between Google and Amazon, in the field of storage and cloud computing.
Previously, also, a similar case occurred when Daniel Powers, a former Amazon Web Services vice-president left the company to take a job in Google. Amazon banned him to take up any such jobs for 18 months that compete with Google’s cloud computing business. In Szabadi’s case, the company is asking more stringent injunctions, which restricts him “from engaging in any activities that directly or indirectly support any aspect of Google’s cloud computing business with partners or resellers.”
Amazon.com, Inc (NASDAQ AMZN): The Lawsuit
The lawsuit filed by Amazon claims that Szabadi was deeply involved in the marketing of Amazon’s cloud computing business to the clients and “played a significant role in developing Amazon’s business strategy and direction in this area.” Within the contract, it was mentioned that he is not allowed to leave the company to work for another major company.
However, Google’s own employment terms restrict Szabadi to solicit any business from Amazon or hold a meeting with any customer he held within the six months before accepting a new role. According to Amazon, Google’s ban on Szabadi does not comply with the terms of the non-compete, non-solicitation and trade secret restrictions in Szabadi’s employment agreement with Amazon.
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Amazon.com, Inc (NASDAQ AMZN) Business News
The lawsuit will be closely monitored by the tech industry as it could set a new benchmark for the employment agreements that some large tech companies require employees to sign at the time of joining. This would also have a effect on the stocks of Amazon (NASDAQ AMZN) and Google (NASDAQ GOOG) depending on how the case pans out.
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