TulipTools Internet Business Owners and Online Sellers Community

Nothing new about that scenario.  That's the way most big bizzez do things to keep each other solvent and not wast the $ competing hard against each other.  Instead of anti-trust price-fixing, it's anti-trust territory-fixing.

Quote:Microsoft is not plotting against Google with eBay, Microsoft's chief executive told a German newspaper, but he said he did often talk with his counterpart at eBay about working together.

"Of course we talk with eBay all the time," Steve Ballmer told Germany's Die Welt in an interview published Friday. "But we don't get together in a secret circle and hatch plans about what we could do together against Google." ...

Ballmer said: "A tie-up with the sole aim of shutting out a competitor makes no sense. The partnership must produce something that is useful for users and advertisers."...

full article: http://news.com.com/Ballmer+squelches+ta...66303.html

Quote:A tie-up with the sole aim of shutting out a competitor makes no sense.
The partnership must produce something that is useful for users and advertisers.

Of course he is going to say that.

Anyone who has been or plans on engaging
in anti trust activities are not going to admit it.

The whole spirit of anti trust laws are to ensure that
whatever is going on is useful for users (consumers).

This market is a whole different bread than traditional
competition between rival companies selling products or services.

However the same type of anti competitive (anti trust)
type violations may be occurring that have occurred in traditional markets.
Like dividing up customers (consumers) fixing prices and engaging
in other anti competitive activities.


ebay is selling / renting space for users to
compete for consumers in a retail environment.

If a serious competitor emerged like Google for instance.

Who stands the chance of loosing their dominant market share?

eBay does. Especially with the given overall environment now.

Unlike traditional markets, in this age of the Internet and 
in a very short time, a viable rival competitor can take down a dominant
leader in a matter of months not years.

SCENARIO:
Let's say Google launched a 3 month TV print and
Internet AD campaign advertising a fixed price sales site.
(Similar to what ebay is trying to do with EE).

Lets call it Get IT Google. GIG
I can see some of the slogans now.

THE GIG IS UP

WE GOT A NEW GIG

GIG WITH THE PROGRAM

Now what if part of the whole GIG was to make is a "members only" club.
One ID for one human. Giving it the feel of exclusivity.
(We all know everybody wants to be part of some club)...

Let's say at the same time they launch a vigorous registration campaign
to attract vendors. (The sellers of the world like you and me).
It also touts that a rigorous verification process will be in place
to ensure that it's members are who they say they are to combat fraud.
(Something the long time leader has NEVER done because it has been able to profit from it).


How about GIG also has a no multiple ID's, (no four accounts to sell and buy with) policy.
No posting ID's if it has a forum for members. SIMPLE ONE HUMAN ONE ID.
Note: If it had a feedback system that FB is only a rating type FB.
Not were anyone can go in and see what you bought or sold
just that you had a transaction with member so and so
and it was good bad or neutral.

(This way members can't say we need more ID's because we don't want buyers to
know we are buying on the site and selling the same stuff we are buying at the same site.)
THE BEAUTY OF A FIXED PRICE SITE IS NO SHILL BIDDING EITHER.

Now with public awareness that this New exciting GIG IS UP.
What do you think would happen?

I believe with out a shadow of a doubt that ebay would become
a ghost town virtually overnight.

I also believe ebay sees that too and takes this THREAT / possibly VERY seriously.


With all that said:

Any dominant market leader who sees a treat on the horizon is going to do
what ever it can to STOP the up and coming rival.
(It's entire business may depend on it).

The signs are everywhere that ebay has engaged in anti competitive
and possible illegal activities to maintain it's dominance in the market. IMO

Answer these questions from your own prospective:

Has ebay engaged in practices that restrain competition?
Do you feel ebay has made attempts to monopolize the market with monopolistic practices?
Do you think some of ebay's policies towards sellers are designed to restrain free trade?
Do you think some of their buy outs could be construed as anti competitive mergers and acquisitions?


There is a silver lining for Meg and team in this:
(And I think they know this as well).

If a rival overtakes them and all but shuts ebay out
or significantly reduces its monopoly on the industry.

Meg and team could simply walk away with their millions with out fear
of being seen as violating anti trust laws and being investigated for it's past activities.

After all this would be seen as an open competitive "choice"
simply driven by the consumers.

That is what free markets are all about.

Quote: engaging in anti trust activities

Microsoft's an expert in that...they're presently engaged in a war with the European Union regarding their anti-trust activities...and South Korea...and there was the anti-trust suit in the US.  ;D

Quote:Unlike traditional markets, in this age of the Internet and 
in a very short time, a viable rival competitor can take down a dominant
leader

Perfect example, new auction site Taobao was started and within less than 2 years was wiping the floor with the former market leader (eBay) Eachnet and had achieved a 58% market share (compared to 31% for Eachnet)

Quote: Let's say at the same time they launch a vigorous registration campaign
to attract vendors

Google has already leaked plans that it intends to make an aggressive sales pitch to vendors in several European countries as part of a "marketplace" that will compete with Amazon, etc.

More rumors that eBay is talking deal with Yahoo and Microsoft:

Quote:Speculation is rife on Wall Street that a big internet deal or alliance is in the works, with eBay, Google, Microsoft or Yahoo! as possible partner - and a Yahoo!-eBay partnership seen as most likely.

A report authored by analyst Imran Khan and the JPMorgan Chase internet team said on Monday: "A partnership or merger between eBay and Yahoo! is the most strategically feasible.

"A combined company would have the leading position in auctions, communications, payments, graphical advertising, audience reach and geographic breadth."

Silicon Valley insiders, high-tech bankers and financial analysts are giving new credence to potential merger deals...

full article: http://networks.silicon.com/webwatch/0,3...121,00.htm

Quote:The obvious merger target is eBay. eBay is a major rock of the internet economy, but has been desperate (and failing) to expand into other areas. eBay's foolish purchase of Skype underscores how badly this company wants to win, but has very little chance.

All Skype really does is make eBay more attractive to potential partners. If Microsoft or Yahoo took eBay, they'd instantly be cemented as #1 in net traffic, as well as gaining the most popular VoIP network for their IM software...

full article: http://www.internetfinancialnews.com/fin...reBay.html

An article in the New York Post on Friday 26 May suggests that Microsoft is still considering buying eBay despite the eBay/Yahoo advertising partnership.

Quote:For several weeks Microsoft has been in discussions about a possible acquisition of online auctioneer eBay, The Post has learned.

According to multiple sources close to the matter, Microsoft has considered buying eBay and merging it with its MSN portal - a deal that would give MSN and eBay considerable clout to take on Google.

Sources indicate that the talks, while still active, have cooled somewhat in the last two weeks as executives considered antitrust issues...

One source close to the matter suggested the Yahoo-eBay tie-up would not stop Microsoft from pursuing the online auctioneer...

full article: http://www.nypost.com/business/64226.htm