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3Taps Countersues Craigslist for Anticompetitive Behavior

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3Taps has pulled off the gloves.   The company that produced one of the best national search mechanisms based on Craigslist data has filed a counter suit against Craigslist claiming the company’s behavior is anticompetitive.  I can’t help but think that 3Taps has been angling for a fight with Craigslist since its inception.  It have to know Craigslist would go after them, as it has been sending Cease and Desist letters to other sites for years.  This results of this suit could resonate throughout secondary marketplace communities.  For example, there were websites that combine eBay listings with other auction listings, providing a one stop auction site.  eBay used Craiglist’s tactic of C/D letters to shut them down.  So, the decision may define the meaning of ‘public information’ and may also decide if/when/where classified ads/auction ads constitute copyrightable material.

The CEO of 3Taps Greg Kidd says,

While  we  respect  what  craigslist  has accomplished in the past in  attaining dominance over online classified advertising, we object to them using that market power illegally to stifle innovation and hurt consumers.  As  craigslist  spends  heavily  to  bully  and  intimidate  companies  that  challenge  them, consumers  are  deprived  of  better  ways  to  find  and  execute  real-time  exchange transactions.

Craigslist  uses  its  monopoly  position  to  achieve  huge  annual  profits without sinking any meaningful costs into research and development or innovation.  In other categories – most notably  in the hotels and  airline bookings marketplace – there has  been  openness  and  continual  evolution,  yet  craigslist  has  gone  in  the  opposite direction,  using  its market  position  to  remain  stagnant  despite  massive  consumer demand for an updated and enhanced user-experience.
In bringing our antitrust counterclaim, we hope to stop craigslist from engaging in an illegal scheme to shut down  third-party  services and products that enhance the use of postings made on craigslist and provide innovative and more useful ways to effect the exchanges the public seeks.
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