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ANTITRUST houston-based rci Internet Services Inc. has sued eBay Inc., the San Jose, Calif.-based online auction company, for unfair competition and violation of the Sherman Act. RCI claims that eBay has a monopoly in the U.S. for the online auctioning of adult items and that it has acted to eliminate competition by directing its wholly owned subsidiary, PayPal Inc., not to allow the service to be used for any adult auctions not held on eBay. RCI also operates online auctions for adult items through its Naughtybirds portal. RCI says that the anonymity offered by PayPal is essential to the success of its online adult auctions and that after eBay bought PayPal, PayPal stopped letting Naughtybirds customers use its service. RCI Internet Services Inc. v. eBay Inc., No. H-03-1050 (S.D. Texas March 25). FOR PLAINTIFF: Max L. Tribble and Erica Harris, Susman Godfrey, Houston

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