> Network Effect as in they use their sizable userbase to prevent any other competition in the space That's not network effect (http://en.wikipedia.org/wiki/Ne

> Network Effect as in they use their sizable userbase to prevent any other competition in the space That's not network effect (http://en.wikipedia.org/wiki/Network_effect http://en.wikipedia.org/wiki/Network_effect). I think you mean to say: "It's unfair that a service, which provides more value than a coompetitor, charges a higher fee"? The Network Effect does not imply monopolistic behaviour. That's two distinct issues. Although large successful companies tend to do both, it does not imply causality. It is true that the need for the network effect is a Barrier to Entry (http://en.wikipedia.org/wiki/Barriers_to_entry http://en.wikipedia.org/wiki/Barriers_to_entry), which is what keeps your "competitor" from entering, and which leaves Ebay with monopolistic situation - intented or not.