Through higher fees and other changes, eBay is trying to push auctioneers off its site, as consumers favor fixed-price purchases. [BusinessWeek]

eBay plans require its Australian buyers and sellers to complete all their transactions through its PayPal payments service. The only holdup? A 38-page, anonymous filing to an Australian regulatory agency, claiming the real purpose of eBay's rule change "is to substantially lessen competition in the Market for Online Payment Processing Services." The fighting-words filing isn't so anonymous anymore. An AuctionBytes reader discovered the 38-page PDF filing was created by Google.

When Peter Thiel launched PayPal a decade ago, he had a vision of a global payments mechanism which would accelerate the withering-away of the nation-state. And then he sold it to eBay. eBay's latest failure to transform the international monetary system is quite literal; for almost two weeks, PayPal has had a bug which prevents it from collecting cross-border payments for subscriptions — this while its new president, Scott Thompson, has been touring the globe. The error: a bit of code in a drop-down menu. Subscriptions are a small part of PayPal's business, though vital to the complaint-prone blogging class. Regardless, it's a trivial bug that should have taken minutes, not weeks, to fix; that eBay has not yet done so would seem to speak to a profound rot in its technical organization — which Thompson headed up as CTO before his promotion.

In the latest installment of "Where in the World is Mark Zuckerberg," one stop on his tour to the subcontinent was to the favored ashram of Larry Brilliant, director of Google's entrepreneurial philanthropy project, Google.org. This would presumably be the one run by Neem Karoli Baba which Apple CEO and co-founder Steve Jobs has also visited. Brilliant has said he also brought Google cofounder Larry Page and eBay cofounder Jeff Skoll there.

Jim Buckmaster, the suspiciously tall CEO of Craigslist, hates meetings. "I've always found them to be at best unproductive and boring, and at worst toxic and destructive," he tells FT Deutschland. "The people who want to show off do, the brown-nosers brown nose, everyone else wastes their time. I also think the larger the meeting, the worse it is." Buckmaster prefers to email or IM, even while in the same room as his electronic correspondents. When forced to attend a meeting, he finds ways to kill time: "Meetings are excellent for doodling. I can remember doing some really, really spectacular doodles." Doesn't this explain so much about how eBay's relationship with Craigslist soured?

The city of Chicago filed suit against eBay subsidiary StubHub for failing to pay taxes. Chicago alderman Edward Burke says the city loses as much as $16 million a year by not collecting taxes on StubHub's online transactions. In response, eBay said it intends to lobby Washington, D.C. to pass legislation banning the collection of Internet taxes as too onerous for small Internet businesses. The "businesses" in question here are the scalpers whose sales StubHub facilitates, not eBay itself. In April, eBay reported that its first quarter-revenues rose 24 percent to $2.19 billion. (Photo by veganstraightedge)

The United States Armed Forces no longer use the F-14 fighter jet, which can make it a real pain for armies that do, such as the Iranian air force, to repair theirs. Fortunately, there's eBay and Craig Newmark's Internet-based love-in, Craigslist. The U.S. Government Accountability Office reports that F-14 spare parts and troop equipment such as night vision goggles can be found and purchased from both sites. "Many of the sensitive items we purchased could have been used directly against our troops and allies, or reverse engineered to develop counter measures or equivalent technologies," read the GAO report. Another instance when a few buyer ratings could go a long way. (Photo by James Gordon)

Paul Osborn of the U.K. suspected his wife was having an affair, so he put her for sale on eBay. Bids for the goods, listed as ""cheating, lying, adulterous slag of a wife" reached $961,700 before the 44-year-old man decided to pull the auction. Good thing he did: eBay's terms of use forbid the sale of humans, in whole or in part.

Craigslist has filed suit against eBay in San Francisco County Superior Court, alleging trademark infringement, breach of fiduciary duty, anti-competitve trade practices and deceptive advertising. Why California? Because the state has some of the strictest antitrust and competition trade laws in the country. Craigslist is asking the court to award damages and force eBay to divest from the online classifieds site. Also alleged? That eBay was a big meanie. The best parts:

Facebook's formal announcement of Facebook Connect is at once a transparently timed response to MySpace's announcement of partnerships with eBay and Twitter yesterday and the culmination of things the social network has been working on for ages. Facebook Connect, at its simplest, lets websites like Digg and Twitter integrate their users' activity into Facebook users' News Feeds. Those two companies, as well as Yahoo's Flickr and Google's Picasa, have been using Facebook Connect well before it was unveiled under that name. It cements Facebook's role as a central place to keep up with one's friends. Yet I'm not sure how I feel about it.

Few people outside Silicon Valley have heard of Roelof Botha. But the former CFO of PayPal is famous here. His two claims to fame: negotiating that company's $1.5 billion sale to eBay, and later, as a partner at Sequoia Capital, investing in YouTube and quickly flipping the startup to Google for $1.65 billion. Is it a coincidence that that figure is 10 percent higher than his PayPal score? Few insiders think so. Botha gets four pages in Sarah Lacy's Once You're Lucky, Twice You're Good — more than Google cofounder Sergey Brin. Other figures who appear on the second page of her Web 2.0 book's index: John Battelle, Ning CEO Gina Bianchini, Facebook board member Jim Breyer, blog blowhard Jason Calacanis, and YouTube cofounder Steve Chen, whom Botha made quite wealthy.

Who are these people? That's the problem I've long had with sites like Twitter and eBay, which offer anonymous user names and little else to go by. And that's been the charm of Facebook, which aims to tie online identities with real ones by asking for work and school information, which is harder to fudge than a screen name. Had eBay and Twitter announce a partnership to share data with Facebook, I'd be impressed. Instead, they, as well as Yahoo, have partnered with MySpace instead to share profile data. Buffoonish technopundits are hailing this as an "advance in data portability." But what does it really mean? Now, in addition to a login like "awesomeguy1980," I'll get to see drunken party snapshots of someone before I reject their Twitter follower request.

AT&T and as many as 15 other big phone companies are planning to launch a rival to Skype in 2009. Why don't they just buy it from eBay? That seems easier. [GigaOm]

Jim Buckmaster has just set himself up for a messy court fight. Responding to eBay's lawsuit against Craigslist and its board — the board being Buckmaster and founder Craig Newmark — he has claimed that he and Newmark issued additional shares in the company to themselves "for the sake of protecting the long term well-being of the Craigslist community." Let's leave aside the question of how the community benefits from Buckmaster and Newmark increasing their ownership. Craigslist is registered as a for-profit company; as such, its only legal responsibility is to its shareholders, not its users.

Far-right French politician Jean-Marie Le Pen once called the Holocaust "just a detail" — worth maybe 10 to 15 lines in a 1,000-page book about World War II. The comments cost him a $284,033 fine. Now Le Pen is out of cash. To make some, he's auctioning his armored 1992 Peugot 605 on eBay. The latest bid: 10 million euros. The Peugot has a full leather interior and a CD player, but it's probably not worth that much. Still, if that sounds like a bargain for your very own piece of revisionist history, you've got until May 10 before eBay's auction closes.

eBay's lawsuit against Craigslist, alleging that founder Craig Newmark and CEO Jim Buckmaster conspired to squeeze eBay out of the company, is fascinating for many reasons. It reveals Buckmaster and Newmark's naked greed: They issued shares of the company to themselves to increase their stakes and decrease eBay's.But it also shows how tight the two have been with Craigslist's workers. eBay owns, or owned 28.4 percent of the company, a stake acquired from early Craigslist employee Philip Knowlton. Knowlton sold his shares in part because Buckmaster and Newmark were trying to squeeze him out, too. (Are you beginning to see a pattern?) The two, acting as Craigslist's board of directors, issued themselves one new share for every five they already owned, a move which pushed eBay's ownership stake down to 24.85 percent — a level which, among other things, eliminated eBay's ability to elect a director for the company. Do the math, and it becomes clear that Craigslist's other shareholders — presumably its employees — own about 3.3 percent of the company. That's a miserably small portion of equity to give employees of a tech startup; normally, about 20 percent of a company's equity is reserved for employees.

The text of eBay's complaint filed in a Delaware court [PDF] has made its way online, and in it, eBay "seeks equitable and legal relief" from Craigslist CEO Jim Buckmaster and founder Craig Newmark for:

Meg Whitman isn't losing any sleep over eBay's role in prepping Virginia Tech gunman Cho Seung-Hui for his rampage that left 33 dead. Asked what was her worst moment at eBay, Meg confides to confides to Portfolio: "The site outage in 1999," adding that she had to sleep on a cot "for multiple nights." Whitman goes on to give eBay kudos for being "incredibly vigilant around trust and safety and keeping the .01% [of customers who aren't 'basically good'] in line," a boast made all the more ridiculous by the company's recent defense of its sale of combustion-enhancing fertilizer to troubled teen Ryan Schallenberger. (The gist of eBay's defense: Ammonium nitrate isn't just used to blow up high schools and federal buildings.) Seeking Alpha has a complete transcript of the interview, in which you'll find these nuggets Portfolio's editors skipped:

Craigslist CEO Jim Buckmaster fired back at eBay on the official Craigslist blog last night, asserting that the auction giant, the owner of a large stake in Craigslist, didn't bother to contact anyone at the company before filing suit. eBay's action, wrote Buckmaster, "hints at ulterior motives." Dozens of commenters left notes in support of the online classifieds site. My favorite is from one Genevieve McGill:

Expect a rash of headlines accusing auction giant eBay of bullying saintly Craig Newmark. eBay has sued Newmark, his business partner Jim Buckmaster, and Craigslist. The charge? Craigslist has allegedly diluted eBay's 28.4 percent stake in the company, which the auction giant acquired from a former Craigslist employee. The part of the story Newmark and Buckmaster don't want anyone to hear: The pair made about $16 million in the process of letting eBay buy the stake in their company. The deal included a shareholder-rights agreement which ought to prevent Craigslist from diluting eBay's stake in the company, people familiar with the deal have told Valleywag. By squeezing out eBay, Newmark and Buckmaster appear to be having their cake and eating it too. Relations between the companies had already deteriorated: eBay had a seat on the Craigslist board, at one point occupied by founder Pierre Omidyar, until last year.