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O'Melveny Wins Dismissal of Sellers' Antitrust Action Against eBay

March 08, 2010

 
FOR IMMEDIATE RELEASE
Contact:
Andrea Rodeschini
O'Melveny & Myers LLP
212.326.2251
arodeschini@omm.com

Sonja Steptoe
O'Melveny & Myers LLP
213.430.6384
ssteptoe@omm.com

SAN FRANCISCO, CA ─ MARCH 8, 2010 ─ O’Melveny & Myers LLP obtained a significant victory for eBay Inc. on March 4, 2010, when Judge Jeremy Fogel of the US District Court for the Northern District of California dismissed a putative class action falsely alleging  that eBay both monopolized the online auction market and charged sellers supracompetitive fees for its services.

 

In granting summary judgment to eBay, Judge Fogel concluded that the plaintiffs failed to demonstrate that they had been injured by the alleged anti-competitive acts and offered no evidence that the alleged monopoly enabled eBay to overcharge them for its services.

 

"Evidence that eBay has raised prices over a period of years, and that several of its employees believe that the company may have raised them too high, proves nothing with respect to whether the prices are supracompetitive," the opinion said. "Plaintiffs have provided no evidence of either restricted output or supracompetitive prices, let alone both."

 

Mary Huser, eBay deputy general counsel, applauded the decision. "We are gratified that the court rejected plaintiffs' claim as baseless," Huser said. "With this meritless suit behind us, we can continue to focus on our core business of providing platforms that bring buyers and sellers together to transact online."

 

Filed in April 2007, the lawsuit unsuccessfully sought to establish a potentially enormous putative class of all auction sellers on eBay and a subclass of all auction sellers who accept PayPal.

 

The San Francisco O'Melveny team was led by partners Tom Brown, Michael Tubach, Randall Edwards, and Richard Parker (DC), and included counsel Katherine Robison and Julie Wood, and associates Laurie Dean, Patricia Hsue, Patrick T. Hein, and Brynly R. Llyr. Case managers Michael O'Donnell and Shivon Meblin, paralegal Stefanie Tamura, and assistant Doreen Bordessa also provided crucial assistance.

 

The case is In re: EBay Seller Antitrust Litigation, case number 5:07-cv-01882, in the U.S. District Court for the Northern District of California.

 

About O’Melveny & Myers LLP

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