eBay cracks down on search sites
eBay, the world's largest online auction service, will no longer allow third-party search engines to tap into its database of nearly three-million auction items and serve up the results with direct links to the items for sale.
For many auction information sites, eBay's actions are tantamount to an outright rejection of the open information environment the Web is based upon. For eBay (Nasdaq:EBAY), though, it's merely a way to protect its customers.
Until about four weeks ago BiddersEdge.com included eBay listings in its search results. The hammer came down on that practice, though, after eBay contacted the company and asked it to stop.
"We're a $9 million company, they're a multibillion dollar company," explained Bidders Edge Vice President of Marketing George Reinhart. "We think we would ultimately win a court battle, but in the meantime they would probably do all sorts of nasty legal things and we don't have the resources to fight them."
Fears of legal battles
Tom Johnson, co-founder of Ruby Lane.com, an information-only auction site focusing on antiques and collectibles, told a similar story. According to Johnson, eBay refused to re-new its contract with RubyLane allowing the site to search its database. Johnson feels it's a way to avoid competition.
 | 'They [eBay] feel that if they can successfully stop every search engine from taking their data, they will have to go to eBay to find eBay items.' -- Tom Johnson, co-founder of Ruby Lane.com. |
"They [eBay] feel that if they can successfully stop every search engine from taking their data, they will have to go to eBay to find eBay items," Johnson speculated. "We feel they have no legal grounds to say you can't put public content on another site. That's the whole purpose of a search engine."
Johnson said Ruby Lane has considered continuing to list eBay results without permission, but, like BiddersEdge.com, it fears getting into a prolonged legal battle with the auction giant.
For eBay, the situation is simple.
Company spokesperson Kevin Pursglove explained shutting down the third-party search engines protects the quality of eBay's auction experience. Pursglove said that, although it's not yet occurred, search queries from outside engines could potentially slow down eBay's database. He also outlined company concerns that outside search results might not display the most up-to-date, accurate information.
'Predatory' practices?
G. Pat Hughes, guerrilla marketer for eBay competitor Auction Universe.com, doesn't agree with that argument.
"eBay is pretty predatory in their marketing, and their efforts are a way of forcing buyers to come to their site and a way of maximizing in terms of their product selection," Hughes explained.
Auction Universe, along with other major online auction sites like Amazon (Nasdaq:AMZN) and Yahoo! (Nasdaq:YHOO), support the use of third-party search sites.
"Auction Universe is generally appreciative and understanding of the benefits global search provides the consumer," said Hughes. "They have a value in this marketplace."
Beginning Tuesday, yet another auction information site will attempt to list eBay results. AuctionWatch.com plans to roll out a new search service that scans millions of auction listings on sites like Amazon, Yahoo!, Microsoft Corp.'s (Nasdaq:MSFT) MSN and eBay.
Although he is aware of eBay's disapproval, AuctionWatch CEO Rodrigo Sales said he plans to go ahead with the listings. eBay's Pursglove was not aware of the AuctionWatch plans, but he said any engine accessing eBay's database wasn't likely to remain anonymous for long.
"It's just a matter of time before we find out," Pursglove said . "We will ask them to stop."