3TAPS, INC.'S ANSWER AND COUNTERCLAIM Case No. CV-12 ...

12345678910111213141516171819202122232425262728215. craigslist’s anticompetitive scheme has given it the power to control pricing andexclude competition in the Relevant Market.216. Upon information and belief, network effects have resulted in high barriers to entryfor any potential new entrant into the Relevant Market. These barriers to entry are evidenced bycraigslist’s ability to keep major companies—such as Yahoo!—from accessing the raw data fromwhich an index could be developed for use in the downstream search market.217. craigslist’s willful and wrongful maintenance and/or extension of its monopolypower (or its attempt to monopolize) is not the result of growth and development as a result ofinnovation, business acumen, or by virtue of offering a superior product. Rather, it is a directconsequence of craigslist’s intentional, exclusionary conduct in connection with its anticompetitivescheme.behavior.218. There is no efficiency-enhancing, procompetitive justification for craigslist’s219. craigslist’s anticompetitive scheme alleged herein has injured (and unless enjoined,will continue to injure) consumers and competitors in the Relevant Market for indexing throughdecreased output, reduced choice, reduced innovation, and other anticompetitive effects includingraising additional barriers to entry in the Relevant Market.220. craigslist’s anticompetitive scheme alleged herein also has injured (and unlessenjoined, will continue to injure) consumers and competitors in the downstream, interrelatedRelevant Market for real-time search through decreased output, reduced choice, reduced innovation,and other anticompetitive effects including raising additional barriers to entry in that RelevantMarket.221. By reason of craigslist’s unlawful monopolization and/or attempted monopolizationof the indexing market, 3taps—a direct competitor in the market for indexing, which serves as abridge to the downstream search market—has been injured in its business and property. Similarly,craigslist’s anticompetitive scheme has injured craiggers and JeBoom, neither of which can provideits search product without pre-staged, indexed data from 3taps.222. Unless enjoined and declared illegal, craigslist’s unlawful conduct will continue,3TAPS’ ANSWER AND COUNTERCLAIM68CASE NO.: 12-CV-3816-CRB