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Summary:

E-Bay is jacking up its rates. I guess owning the entire market gives you that kind of monopolistic leverage. The price boost is going to be between 28% -to-50% . You know what even Microsoft doesn’t pull stunts like that. If a phone company raised prices […]

E-Bay is jacking up its rates. I guess owning the entire market gives you that kind of monopolistic leverage. The price boost is going to be between 28% -to-50% . You know what even Microsoft doesn’t pull stunts like that. If a phone company raised prices like that, well there will be opinion pieces written about it, and Senators would get involved. The It also highlights the big issue which never gets talked about – Silicon Valley jumps up and down, cries crocodile tears and laments the monopolies of Microsoft, Baby Bells, Cable Companies, US Government. I hope this is something blogsphere talks about. Not many references so far. Martin has a quick analysis.

I wonder if this will draw the attention of the Justice Department. Probably not since it is just a bunch of individual consumers and the prices get passed along anyway in higher prices to consumers. But I wouldn’t doubt if the states attorney Generals get involved here. E-Bay is setting itself up for regulation! This is a sad thing to see.

Also there could be another reason: slowing growth and unrealistic expectations are forcing E-Bay to jack up the prices. (Apparently they have pissed off the girl scouts as well!)

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By Om Malik
  1. what is amazing is that since ebay wrapped up their position as market leader when Yahoo auctions collapsed there has been no attempt by others (VCs) to take some of that market share away. It is not like its 80% gross margins are not attractive.

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  2. I put up a laptop for sale on Ebay that I had to withdraw (just after putting it up for a day) for some reaons. I still got slapped with a $15 bill from them (and this was before the price hike).

    Why hasnt anyone challenged their status quo? Google, Amazon, Yahoo, Microsoft… what the hell are these so called giants doing?

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  3. Aren’t the Girl Scouts monopolistic with the cookies? Is the Justice Department looking into them?

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  4. The Not-So-Pretty EBay Penny

    Out for a penny, and the market takes a pound of flesh: EBay, one of the world’s largest e-commerce companies, also came in one penny under Wall Street’s expectations for the fourth quarter, with a profit of $205.4 million, or 30 cents a share. That …

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