EBay Sues Craigslist as 'Family' Kerfuffle Gets Nasty

Online culture clash heads for court
By Rob Quinn,  Newser Staff
Posted Apr 23, 2008 3:15 AM CDT
A sign is posted inside eBay headquarters in San Jose, Calif., Tuesday, April 15, 2008. Ebay is expected to release quarterly earnings Wednesday.    (AP Photo/Paul Sakuma)
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(Newser) – The uneasy relationship between Craigslist and eBay, its competitor-turned-minority shareholder, has taken a turn for the worse. EBay has filed a lawsuit against Craigslist, accusing the classified ad site of "unfairly" diluting the auction giant's stake in it by 10%, the New York Times reports. Craigslist has fired back, calling eBay "unethical" and accusing it of aiming for a hostile takeover.

EBay bought a chunk of Craigslist four years ago but has reportedly been frustrated by the site's unconventional approach to business and apparent lack of desire to maximize profits. Relations between the two appear so strained that eBay filed suit without first making its complaint known to the other company, according to a post on Craigslist's company blog.