Internet voice service provider Jajah on Thursday said
that web auctioneer eBay blocked the use of the startup's embedded voice links
on its auction site, a move Jajah said raises concerns about anti-competitive
behavior.
Jajah said eBay removed the listings of
sellers who used Jajah’s technology, which enables potential buyers to connect with
sellers through a click-to-call button embedded in their ad.
eBay sent emails to its sellers in the U.S. and Italy instructing them that Jajah’s
technology, called Buttons, violated eBay’s link policy.
eBay’s policy seeks to protect its site from
unauthorized or insecure links that could harm its business, but Jajah charges
that eBay’s ownership of Skype, a VoIP firm, makes the auction giant’s argument
specious.
“The fact that eBay acquired Skype for
billions of dollars showed that they thought that VoIP would be a value-add for
its community,” said Roman Scharf, co-founder of Mountain View, California-based
Jajah. “Now that we are offering VoIP to the eBay community, eBay finds it to
be a problem.”
According to Mr. Scharf, eBay, which
acquired Skype in October 2005 for $2.5 billion, is pursuing the no-Buttons
policy in the U.S. and Italy but not in other markets such as Germany and the U.K.
San Jose, California-based eBay said Jajah’s
Buttons violates its links policy in every country in which eBay does business,
and that it will continue to remove listings that include Jajah’s Buttons.
“We don’t allow Skype buttons in our listing
pages either,” said Catherine England, an eBay spokeswoman.
“There are Skype links in specific areas and
we have started testing Skype buttons but anytime a link directs users off of
our site, it creates opportunities for fraudsters,” Ms. England said.
“The policy is about safety for our members.”
Jajah’s Buttons, introduced on Monday, allow
sellers for instance to place widgets in blogs or emails and have potential
buyers make an inexpensive calls to sellers without the seller giving out his
or her phone number.
“eBay’s policy makes reference to insecure
or political content and the like, and our Buttons are nothing like that,” Mr.
Scharf said. “We don’t take the user to a rival or fraudulent site or any such
thing. Using Buttons just means that the user’s phone rings.”
Mr. Scharf said he is willing to offer eBay
a commercial olive branch – a piece of the action.
“Every single Jajah call means money in the
pocket of our partners,” he said. “eBay has its choice. It can simply tolerate
Jajah or support Jajah but either way it will mean revenue for them.”
With VoIP application providers increasingly
embedding voice communications in emails, blogs and web sites, it seemed
inevitable that some Internet business would eventually move to block
non-sanctioned VoIP services.
But the fact that the web business is eBay,
which owns Skype, the best known VoIP provider in the world, brings up issues
of open markets and competition that could draw regulatory attention.
VoIP sits on a precarious boundary between
the Internet and telecommunications. On the one hand, the Internet is cheered
as the ultimate open marketplace. On the other, telecommunications is one of
the most heavily regulated industries in the world.
“Once voice becomes an application embedded
in a web page, the notion of utility telephony begins to crumble,” said Will
Stofega, an analyst with IDC. “Of course, if there is a compelling advantage or
difference between clients, that may change the game and an end user may demand
their favorite client.”
If eBay users challenged the auction site’s
policy, then the issue could get on the U.S. Federal Communications Commission
radar, said Mr. Stofega.
“But at the end of the day, I bet neither of the parties want that,” he
concluded.