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HR platform Employment Hero is suing SEEK for anti-competitive conduct after the hiring platform moved to cut off the start-up’s API access.
On 24 June, SEEK informed Employment Hero (EH) that it would cut off its API access from 25 August, a move which would unravel the integration between the platforms and affect EH customers hoping to locate talent through the SEEK jobs board.
Now, in a bid to preserve cross-platform integration for its customers, Employment Hero, which manages employee onboarding, payroll and other HR functions, and has integration with hiring platforms, including SEEK, LinkedIn, and Indeed to help employers connect with prospective candidates, has launched legal action against SEEK.
“We understand SEEK is a critical integration for many customers, and our foremost priority is continuity for our customers. To this end, we have reluctantly applied to the Australian Federal Court for an interim injunction with the aim of maintaining the API link with SEEK,” Employment Hero informed its customers on its FAQ page.
Employment Hero has claimed that SEEK’s decision to cut off its API access was anti-competitive due to SEEK’s market power, which made it a critical integration for Employment Hero’s platform.
“SEEK is a critical integration for many customers, and our foremost priority is continuity and confidence for every employer. To this end, we have reluctantly commenced Federal Court proceedings to apply for an interim injunction with the aim of stopping the termination,” an Employment Hero spokesperson said.
“We consider that the termination was a breach of the competition laws,”
Employment Hero and SEEK have a complicated dynamic, being both competitors and investors. Seek’s venture capital arm, the Seek Growth Fund, holds significant shares in Employment Hero.
At the same time, Employment Hero’s SmartMatch hiring platform, which uses AI to find suitable candidates for open roles, could pose a competitive threat to SEEK.
SEEK declined to comment on the substance of the allegations, citing the active legal proceedings, but noted that it intends to defend them.
“SEEK operates in a highly competitive market with many competitors, from multi-nationals to start-ups, and believes that the vibrancy of competition generates innovation that is very beneficial for all customers,” SEEK said in response to the case.
In a statement on the Employment Hero website, CEO Ben Thompson wrote that the company would advocate to preserve “choice and progress” for its customers.
Employment Hero also assured customers that if the SEEK API access were to be terminated, candidates from SmartMatch, Indeed and LinkedIn would continue to flow directly into the platform’s applicant tracking system.
“If this change comes into effect, it will only affect the SEEK job board integration. All other Employment Hero features, including HR, payroll, benefits, and recruitment tools, remain fully operational,” it said.
