eBay Responds to French Court Ruling Versus LVMH

Injunction is an Abuse of Selective Distribution

PARIS, November 30 - eBay responds to a decision by Commercial Court of Paris versus LVMH, to
fine eBay EUR1.7 million in relation to an injunction that prevents French
eBay users from buying or selling LVMH Group perfumes and cosmetics on any
eBay website.

Alex von Schirmeister, General Manager of eBay in France, said: "Today's
outcome hurts consumers by preventing them from buying and selling authentic
items online. The injunction is an abuse of 'selective distribution'. It
effectively enforces restrictive distribution contracts, which is
anti-competitive.

"We believe that the higher courts will overturn this ruling and ensure
that eCommerce companies such as eBay will continue to provide a platform for
buyers and sellers to trade authentic goods."

Mr von Schirmeister added, "The fine itself is disproportionate given
that eBay complied with the Injunction. It is out of step with our legal
victories in France, UK, Germany, Belgium and the US."

NOTE TO EDITORS

The injunction, which was issued in June 2008, required eBay to stop
French users from buying or selling authentic LVMH perfume products on any
eBay site in the world.

To comply with the injunction, eBay used state of the art filtering
software to check millions of daily listings, with thousands of listings of
authentic items being rendered invisible and inaccessible to French eBay
users.

In its court submission, LVMH provided detailed information on just 1,341
listings out of 200 million listings that are live on eBay every day. eBay
believes that these listings were posted by people who set out to
deliberately circumvent the extensive systems that had been put in place. In
total, 1091 listings (81%) that LVMH reported, the seller did not accurately
describe the item being sold, containing either misspelled brand names, no
brand names at all, or only pictures of the product.

Appeals hearings in relation to this injunction and two related LVMH
cases are scheduled for May 2010.

About eBay

Founded in 1999, eBay.co.uk is the UK's number 1 e-commerce site,
providing a platform for over 17.7m unique visitors per month (Nielsen /
Netratings, September 2009) to buy and sell new, unique and used items in a
fun and easy way.

    - Far from an online auction house, eBay currently has 17 million live
      listings on the UK site, with fixed price goods accounting for the
      majority (56%) of items sold globally.
    - Sellers of all sizes, including 120,000 registered businesses and 20
      high-street retailers use eBay.co.uk to reach the UK's largest online
      shopping audience.
    - eBay supports buyers and sellers by promoting the best value deals
      through Daily Deals, and the eBay Outlet sells products from well known
      brands at up to 70% off the recommended retail price. Follow
      www.twitter.com/eBay_life4less for alerts to great deals on eBay
      and beyond.
    - eBay campaigns on the issues affecting buyers and sellers in a number
      of ways, including the eBay Online Business Index and consumer choice
      campaigns as featured on consumerchoice.eu/uk/
    - eBay.co.uk is owned by eBay Inc, which has expanded to include some of
      the strongest brands in the world, including eBay, PayPal, StubHub,
      Shopping.com, and others

For more information please contact: Vanessa Canzini: +44-20-8605-3281 / +44-7885-627-601