A California court has handed eBay a significant victory in a legal dispute concerning the e-commerce giant's right to suspend the accounts of sellers who it believes misrepresent merchandise on their stores and run afoul of the company's terms of service. In late January, the California Court of Appeal for the Fourth Appellate District upheld an earlier series of rulings exonerating eBay for alleged antitrust violations in barring offending merchants from selling on the marketplace.
While it doesn't have the headline-grabbing elements of a CIA sex scandal, eBay is facing major embarrassment after the Justice Department and the state of California sued the company over the content of emails allegedly sent between its former CEO Meg Whitman and board member Scott Cook, CEO of Intuit. According to the complaint, the CEOs at eBay and Intuit entered into an agreement as early as 2006 to restrict their ability to actively recruit employees from each other's company. In 2007, the pact allegedly evolved into an agreement that eBay wouldn't recruit Intuit's employees.