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Facebook and eBay downplay Google threat
by Staff Writers
San Francisco (AFP) Oct 17, 2011

China closed to outside Internet firms: eBay chief
San Francisco (AFP) Oct 17, 2011 - The head of global online auction powerhouse eBay said on Monday that China has essentially put up a wall when it comes to non-Chinese Internet firms.

"The domestic China market for Internet-based service is, in essence, closed," eBay chief executive John Donahoe said during an interview at a Web 2.0 Summit in San Francisco.

"The Chinese government is not going to allow a non-Chinese Internet company to succeed in China...it is a weapon in national security."

Opportunity, from eBay's perspective, lies in connecting China to the rest of the world.

EBay this year has seen more than $6 billion in goods sold by Chinese sellers to people outside China and is a marketplace for people in that country seeking to import luxury items, according to Donahoe.

While eBay is keenly interested in the booming China market, regulations there would have to ease for the California-based Internet firm to launch a version of its service there, he said.


Silicon Valley star Sean Parker said Monday that Facebook would have to blunder in a big way for Google's social network to steal its crown.

"Facebook would have to screw up royally and Google would have to do something really smart," Parker said during an on-stage interview that opened a Web 2.0 Summit in San Francisco.

Parker co-founded controversial music-sharing service Napster in the 1990s and his role in Facebook's rise was woven into the hit Hollywood film "The Social Network."

"It is tough to compete with network effects," Parker said when asked his thoughts on the threat posed to Facebook by Google+.

Google needs to get Facebook users to switch allegiances, then do the same with those people's online friends, and those people's friends, and so on, explained Parker, who owns part of Facebook.

A threat to Facebook is "power users" behind attention-grabbing content turning to rival online venues to escape drowning in the flood of posts, according Parker.

"I don't think privacy is Facebook's biggest problem," Parker said, touching on a topic for which Facebook has been criticized.

"The biggest problem is the glut of information that power users are overwhelmed with," he continued. "Maybe the threat to Facebook is the power users have gone to Twitter or Google+."

He supported Facebook improving ways for its approximately 800 million users to more selectively share posts, pictures or other information with one another.

"Sean is really one of the great prophets of our industry," said Saleforce.com founder Marc Benioff, whose online business software startup has blossomed into a multi-billion-dollar poster child for cloud computing.

"Facebook, in many ways, is eating the Web," he continued during a talk at Web 2.0. "Facebook is becoming a vision of what the next-generation consumer operating system is."

Online auction powerhouse eBay and its thriving financial transactions service PayPal also see strong "network effects" providing defense from Google's growing commerce platform.

"I agree with Sean, network effects are powerful things," eBay chief executive John Donahoe said during an on-stage interview at Web 2.0.

Google has a tremendous online search and advertising platform and Facebook a widely embraced social platform, while eBay has an entrenched "e-commerce" platform, according to Donahoe.

"The wall between e-commerce and retail is crumbling amazingly fast," Donahoe said. "The large retailers are banging down our doors and saying 'The world is changing; we need help'."

EBay last week launched PayPal Access online identity program and an open X.commerce platform for payments to let merchants large or small tap into Internet age cashless transactions.

X.commerce is intended to match merchants with independent developers building innovative ways to handle check-outs at websites, inventories, calculating taxes and other aspects of running shops with online outlets.

Meanwhile, PayPal Access will let people shop at websites anywhere on the Internet using names and passwords from accounts at eBay's widely used financial transactions service.

EBay boasted that there are more than 100 million PayPal accounts in 190 markets worldwide.

Google said last week that its online social networking challenge to Facebook is growing fast and has topped 40 million users.

"People are flocking to Google+ at an incredible rate and we are just getting started," Google co-founder and chief executive Larry Page said during an earnings conference call.

Page said Google+ style social features will be "baked in" to the Internet star's other offerings.

The Internet giant on September 20 opened google.com/+ to the public as it ramped up its challenge to Facebook.

Google has also been beefing up its e-commerce platform and letting people use some Android smartphones to find local bargains and pay by tapping handsets on sensor pads at checkout counters.

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China's Alibaba delays fee hike after web protest
Shanghai (AFP) Oct 18, 2011 - Chinese Internet giant Alibaba said it will delay a fee hike for some sellers on its popular online shopping site after a storm of protest over the planned rise.

Alibaba Group would also invest 1.8 billion yuan ($284 million) in its Taobao Mall site in a move to help disgruntled small vendors, the firm said in a statement issued late Monday.

The announcement came after tens of thousands of users attacked big brands including Japanese cheap chic clothing chain Uniqlo on Taobao Mall last week, threatening to place huge orders online and immediately cancel them to protest against the service fee hike.

The move -- aimed at denting large retailers' customer ratings which can result in a suspension under the site's rules -- was decried by Alibaba chairman Jack Ma who described the protesters as "people playing the Nazi anthem, hurting the innocent by shouting 'Eliminate all, destroy all.'"

"We help small businesses wholeheartedly because we understand that kind of pain," Ma wrote on Sina Weibo, China's popular Twitter-like microblogging service.

"But not everybody who does business will make money. Business is a serious discipline of learning."

The vendors' angry reaction came after Taobao Mall said last week that annual service fees would rise up to ten-fold to 60,000 yuan.

That fee would be refunded to merchants who achieve a certain sales volume or high positive-feedback levels from customers, angering small vendors who said they were disadvantaged by the changes.

A compulsory fixed-sum deposit would also go up to 150,000 yuan from 10,000 yuan, Alibaba said.

Under the revised plan, Alibaba will allow a nine-month grace period on the fee hike, which takes effect from 2012, to existing vendors with good customer ratings, the statement said.

All vendors will only need to pay half of the required deposit while Alibaba will make up the shortfall, it said.

The investment in Taobao Mall, will help small vendors to improve the quality of products and services and protect the interest of consumers, the statement said.

Taobao Mall President Zhang Yong was quoted as saying the fund will be used for sellers having "operational difficulties".

China's Ministry of Commerce said in a statement over the weekend that it had ordered Alibaba to "appropriately address the matter" and respond swiftly to the requests of small vendors.

Alibaba, in which Yahoo! holds a 43 percent stake, is China's largest e-commerce company.



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INTERNET SPACE
China's Alibaba delays fee hike after web protest
Shanghai (AFP) Oct 18, 2011
Chinese Internet giant Alibaba said it will delay a fee hike for some sellers on its popular online shopping site after a storm of protest over the planned rise. Alibaba Group would also invest 1.8 billion yuan ($284 million) in its Taobao Mall site in a move to help disgruntled small vendors, the firm said in a statement issued late Monday. The announcement came after tens of thousands ... read more


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