No More Auctions of Digital Goods on eBay
We've pointed out more than a few times how digital goods muck up traditional markets that are based on the concept of scarcity, and it appears that eBay has come to the same conclusion. It's now banned the direct sale of purely digital goods from either its auctions or its direct sales offerings. Instead, those who want to sell digital goods need to put up a classified ad on the site, rather than a transactional platform. The basic reason has to do with the (wouldn't you know it?) infinitely reproduceable nature of digital goods.
eBay's reasoning is that since digital goods can be sold for pennies, with the fee structure of auctions you can game the feedback system for nearly nothing. Of course, no mention was made of the alternative reason (which the RIAA and MPAA would probably feel is just as applicable).