By KATIE HAFNER The New York Times
In quick succession one morning last month, Louisiana state legislators plowed through a long list of bills, including one to relocate the motor vehicle commission, another to regulate potentially abusive lending practices, and yet another that was the handiwork of eBay, the digital shopping mall that bills itself as "the world's online marketplace."
EBay had worked overtime to ensure the passage of Senate Bill 642, which sought to exempt some Internet transactions -- like those that occur on its Web site -- from Louisiana licensing requirements for businesses conducting auctions. As the State Senate's Commerce Committee convened to consider the bill, Duane Cowart, an eBay lobbyist, testified that forcing eBay "trading assistants" to fork over $300 for a license was unduly burdensome.
"What they do on the Internet is not an auction, and they are not auctioneers," Mr. Cowart told the committee. Trading assistants take items on consignment from other owners and put them up for bid on eBay, but Mr. Cowart said their activities were more akin to placing classified ads. Louisiana's senators seemed to agree with him wholeheartedly. "I think eBay is great," said one, while another regaled the room about his adventures shopping for a Plymouth Prowler on eBay. State Senator Noble E. Ellington, a Democrat who sponsored the bill at Mr. Cowart's behest, beamed as his colleagues gave the legislation their unanimous support.
EBay's lobbying activities are not confined to Louisiana. As the company has spread its innovative and influential wings across the Internet, it has also woven together a muscular and wily lobbying apparatus that spans 25 states. "It is a fast-moving train, and if you get in front of it you'll get flattened," said Sherrie Wilks, an official with Louisiana's licensing agency, who is concerned that eBay flouts regulatory oversight by persuading state legislators to take the company's side.
Regulators in other states also say that when they try to erect guidelines around eBay's activities, they quickly encounter the realities of the company's political power, raising anew the perennial questions about the proper balance among public policy, consumer protection and business interests. EBay's lobbying tactics, meanwhile, illustrate the spoils to be won when a savvy, resourceful company combines local political persuasion and grass-roots rallying to get lucrative regulatory exemptions that allow it to safeguard its profits.
EBay's efforts have been remarkably successful, and the company, which has worked tirelessly to cultivate its image as a friendly neighborhood bazaar even as it engages in hard-nosed lobbying, is not shy about boasting of its victories. Last year, Ohio passed a law that would have regulated eBay sellers, but the company moved quickly -- with the help of seasoned lobbyists -- to have a pre-emptive and more favorable bill passed.