21/05: CraigsList vs. eBay: No Kumbaya in Kijiji-ville
Category: eBay/Auction site news
Posted by: froglog
Julia Wilkinson is a blogger, freelance writer, and the author of several books that are available on her website. Here is her excellent BLOG
The warm 'n' fuzzies are gone between craigslist and eBay. That is, assuming they were ever there to begin with. Craigslist is suing eBay, alleging that eBay used its minority shareholder status to glean proprietary information about craigslist that was used against it for the benefit of eBay's Kijiji.com classifieds site (referred to as a "craigslist killer" inside eBay, according to craigslist), unfair and unlawful competition, false advertising, and trademark infringement, among other things.
The text of the complaint unveils the juicy details. The marriage between the two sites (indeed, Meg Whitman referred to eBay's efforts to own part of craigslist as "a courtship") had issues from the start, as with many relationships where there is an unequal balance of power.
Craiglist (CL) had gotten cold feet initially, when in early discussions eBay allegedly wanted "blocking rights on all forms of corporate transactions..." and other rights not included in the minority interest. But when craigslist backed out of the deal, eBay pushed harder, inviting key CL execs to a meeting where eBay's then-CEO Meg Whitman made the case for the relationship. Whitman and other eBay execs allegedly referred to the companies' similar values and eBay founder Pierre Omidyar's "Code of Conduct."
She also emphasized how eBay could help CL on the matters of "trust and safety" and international environments.
But one of the things that impressed craigslist founder Craig Newmark and CEO Jim Buckmaster the most was eBay's "dedication to Pierre Omidyar's Community Values," with principles such as "We encourage you to treat others the way you want to be treated," which were similar to CL's own values.
(Interestingly, Buckmaster is described in his bio on the CL site as the "only CEO ever described as anti-establishment, a communist, and a socialistic anarchist.")
Continued
The warm 'n' fuzzies are gone between craigslist and eBay. That is, assuming they were ever there to begin with. Craigslist is suing eBay, alleging that eBay used its minority shareholder status to glean proprietary information about craigslist that was used against it for the benefit of eBay's Kijiji.com classifieds site (referred to as a "craigslist killer" inside eBay, according to craigslist), unfair and unlawful competition, false advertising, and trademark infringement, among other things.
The text of the complaint unveils the juicy details. The marriage between the two sites (indeed, Meg Whitman referred to eBay's efforts to own part of craigslist as "a courtship") had issues from the start, as with many relationships where there is an unequal balance of power.
Craiglist (CL) had gotten cold feet initially, when in early discussions eBay allegedly wanted "blocking rights on all forms of corporate transactions..." and other rights not included in the minority interest. But when craigslist backed out of the deal, eBay pushed harder, inviting key CL execs to a meeting where eBay's then-CEO Meg Whitman made the case for the relationship. Whitman and other eBay execs allegedly referred to the companies' similar values and eBay founder Pierre Omidyar's "Code of Conduct."
She also emphasized how eBay could help CL on the matters of "trust and safety" and international environments.
But one of the things that impressed craigslist founder Craig Newmark and CEO Jim Buckmaster the most was eBay's "dedication to Pierre Omidyar's Community Values," with principles such as "We encourage you to treat others the way you want to be treated," which were similar to CL's own values.
(Interestingly, Buckmaster is described in his bio on the CL site as the "only CEO ever described as anti-establishment, a communist, and a socialistic anarchist.")
Continued
