3Taps Accuses craigslist of Violating Federal Antitrust Laws

SAN FRANCISCO--()--3Taps, Inc. (“3Taps”), a leading platform for developers building applications using online classifieds, today filed an answer denying the allegations of a July 20 lawsuit by craigslist, Inc. (“craigslist”), as well as an antitrust counterclaim alleging that craigslist is engaging in anticompetitive business practices that violate federal antitrust laws to the detriment of competition and consumers. The filing was made in federal court in the Northern District of California and can be accessed on 3Taps’ website at www.3taps.com.

Greg Kidd, founder and CEO of 3Taps, said, “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.”

He continued, “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,” concluded Kidd.

Commenting on craigslist’s complaint against 3Taps and PadMapper, Inc. (“PadMapper”), an online application for apartment rentals, Kidd said, “The issue here is who gets to use exchange related facts – product descriptions and prices – in a vital online marketplace. By allowing general search engines to capture this information, craigslist is making it publicly available in an attempt to drive users to its site, yet refuses to accept the consequences: consumer-driven innovation. That public data could be leveraged to spur innovation that will render markets more efficient and create better experiences for consumers, but craigslist would prefer to stymie any potential competition at the expense of its users.”

Kidd added, “The basis of our antitrust counterclaim and defense against craigslist’s baseless lawsuit is simple: public facts are public property – openly and equally available to all businesses and consumers. Sham copyright claims and unenforceable terms of use cannot stand when they deceive users, intimidate innovators, or thwart a competitive marketplace.”

About 3Taps

3taps is a platform that collects and distributes exchange-related data. Its “Data Commons” is open to all developers and posting sources interested in creating efficient and fair markets. Developers are free to build applications using 3Taps’ outbound APIs. Providers of postings are invited to render their data more widely accessible through use of 3Taps’ inbound APIs. 3taps exists to create new markets based on open access to real time data, and to create a fair basis for sharing the economic benefits associated with this data.

Contacts

Sard Verbinnen & Co
Jared Levy, 212-687-8080

Contacts

Sard Verbinnen & Co
Jared Levy, 212-687-8080