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EBay Loses Round in Court

Bloomberg News

EBay Inc. lost a bid to dismiss a counterclaim filed by Bidder’s Edge Inc. in a legal battle over the collection and use of information on line. U.S. District Court Judge Ronald Whyte ruled EBay hadn’t proved that Bidder’s Edge lacked antitrust standing for its claim. The closely held company’s countersuit contends EBay is attempting to monopolize online bidding and violating antitrust laws by trying to limit access to auction listings. Bidder’s Edge, based in Burlington, Mass., collects information from more than 170 online auction sites, allowing users to comparison shop on its Web site. EBay sued Bidder’s Edge in December alleging the company was trespassing, infringing on copyright and engaging in unfair business practices. In May, Whyte granted a preliminary injunction stopping Bidder’s Edge from combing EBay’s auction site and posting items without EBay’s permission. Internet companies are closely watching the case, saying the outcome could affect the operation of Web search engines, price- comparison sites and others. Shares of San Jose-based EBay fell $2.81 to $46.88 on Nasdaq.

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