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EBAY » Topics » There are many risks associated with our international operations.

This excerpt taken from the EBAY 10-Q filed Apr 28, 2009.

There are many risks associated with our international operations.

Our international expansion has been rapid and our international business, especially in Germany and the U.K., has also become critical to our revenues and profits. Net revenues outside the U.S. accounted for approximately 54% and 52%, respectively, of our net revenues in fiscal year 2008 and the first three months of 2009. Expansion into international markets requires management attention and resources and requires us to localize our services to conform to local cultures, standards, and policies. The commercial, Internet, and transportation infrastructure in lesser-developed countries may make it more difficult for us to replicate our traditional Marketplace business model. In many countries, we compete with local companies that understand the local market better than we do, and we may not benefit from first-to-market advantages. We may not be successful in expanding into particular international markets or in generating revenues from foreign operations. For example, in 2002 we withdrew our eBay marketplace offering from the Japanese market, and in 2007 we contributed our business in China to a joint venture with a local Chinese company. Even if we are successful in developing new markets, we often expect the costs of operating new sites to exceed our net revenues for at least 12 months in most countries.

As we continue to expand internationally, including through the expansion of PayPal, Skype, Shopping.com, and our classified businesses, we are increasingly subject to risks of doing business internationally, including the following:

•

strong local competitors;

•

regulatory requirements, including regulation of Internet services, communications, auctioneering, professional selling, distance selling, privacy and data protection, banking, and money transmitting, that may limit or prevent the offering of our services in some jurisdictions, prevent enforceable agreements between sellers and buyers, prohibit the listing of certain categories of goods, require product changes, require special licensure, subject us to various taxes, penalties or audits, or limit the transfer of information between us and our affiliates;

•

greater liability or legal uncertainty regarding our liability for the listings and other content provided by our users, including uncertainty as a result of legal systems that are less developed with respect to the Internet, unique local laws, conflicting court decisions and lack of clear precedent or applicable law;

•

cultural ambivalence towards, or non-acceptance of, online trading;

•

laws and business practices that favor local competitors or prohibit foreign ownership of certain businesses;

•

difficulties in integrating with local payment providers, including banks, credit and debit card networks, and electronic fund transfer systems or with the local telecommunications infrastructure;

•

differing levels of retail distribution, shipping, communications, and Internet infrastructures;

•

different employee/employer relationships and the existence of workers’ councils and labor unions;

•

difficulties in staffing and managing foreign operations;

•

challenges associated with joint venture relationships, including dependence on our joint venture partners;

•

difficulties in implementing and maintaining adequate internal controls;

•

longer payment cycles, different accounting practices, and greater problems in collecting accounts receivable;

•

potentially adverse tax consequences, including local taxation of our fees or of transactions on our websites;

•

higher telecommunications and Internet service provider costs;

•

different and more stringent user protection, data protection, privacy and other laws;

•

seasonal reductions in business activity;

•

expenses associated with localizing our products, including offering customers the ability to transact business in the local currency;

•

profit repatriation restrictions, foreign currency exchange restrictions, and exchange rate fluctuations;

•

volatility in a specific country’s or region’s political, economic or military conditions (e.g., in South Korea relating to its disputes with North Korea); and

•

differing intellectual property laws.

Some of these factors may cause our international costs of doing business to exceed our comparable domestic costs. As we expand our international operations and have additional portions of our international revenues denominated in foreign currencies, we also could become subject to increased difficulties in collecting accounts receivable, repatriating money without adverse tax consequences, and risks relating to foreign currency exchange rate fluctuations. The impact of currency exchange rate fluctuations is discussed in more detail under “We are exposed to fluctuations in currency exchange rates and interest rates,” above.

In addition, we conduct certain functions, including product development, customer support and other operations, in regions outside the U.S., particularly in India and China. We are subject to both U.S. and local laws and regulations applicable to our offshore activities, and any factors which reduce the anticipated benefits, including cost efficiencies and productivity improvements, associated with providing these functions outside of the U.S. could adversely affect our business.

We are continuing to expand PayPal’s services internationally. In some countries, expansion of PayPal’s business may require a close commercial relationship with one or more local banks, a shared ownership interest with a local entity or registration as a bank under local law. Such requirements may reduce our profitability or limit the scope of our activities in particular countries. Any limitation on our ability to expand PayPal internationally could harm our business.

We maintain a portion of Shopping.com’s research and development facilities and personnel in Israel, and in January 2008 we acquired Fraud Sciences Ltd., an Israeli company. As a result, political, economic and military conditions in Israel affect those operations. The future of peace efforts between Israel and its neighboring countries remains uncertain. Increased hostilities or terrorism within Israel or armed hostilities between Israel and neighboring countries or other entities could make it more difficult for us to continue our operations in Israel, which could increase our costs. In addition, many of our employees in Israel could be required to serve in the military for extended periods of time under emergency circumstances. Our Israeli operations could be disrupted by the absence of employees due to military service, which could adversely affect our business.

These excerpts taken from the EBAY 10-K filed Feb 20, 2009.

There are many risks associated with our international operations.

Our international expansion has been rapid and our international business, especially in Germany and the U.K., has also become critical to our revenues and profits. Net revenues outside the U.S. accounted for approximately 51% and 54%, respectively, of our net revenues in fiscal years 2007 and 2008. Expansion into international markets requires management attention and resources and requires us to localize our services to conform to local cultures, standards, and policies. The commercial, Internet, and transportation infrastructure in lesser-developed countries may make it more difficult for us to replicate our traditional Marketplace business model. In many countries, we compete with local companies that understand the local market better than we do, and we may not benefit from first-to-market advantages. We may not be successful in expanding into particular international markets or in generating revenues from foreign operations. For example, in 2002 we withdrew our eBay marketplace offering from the Japanese market, and in 2007 we contributed our business in China to a joint venture with a local Chinese company. Even if we are successful in developing new markets, we often expect the costs of operating new sites to exceed our net revenues for at least 12 months in most countries.


	•	strong local competitors;

	•	regulatory requirements, including regulation of Internet services, communications, auctioneering, professional selling, distance selling, privacy and data protection, banking, and money transmitting, that may limit or prevent the offering of our services in some jurisdictions, prevent enforceable agreements between sellers and buyers, prohibit the listing of certain categories of goods, require product changes, require special licensure, subject us to various taxes, penalties or audits, or limit the transfer of information between us and our affiliates;

	•	greater liability or legal uncertainty regarding our liability for the listings and other content provided by our users, including uncertainty as a result of legal systems that are less developed with respect to the Internet, unique local laws, conflicting court decisions and lack of clear precedent or applicable law;

	•	cultural ambivalence towards, or non-acceptance of, online trading;

	•	laws and business practices that favor local competitors or prohibit foreign ownership of certain businesses;

	•	difficulties in integrating with local payment providers, including banks, credit and debit card networks, and electronic fund transfer systems or with the local telecommunications infrastructure;

	•	differing levels of retail distribution, shipping, communications, and Internet infrastructures;

	•	different employee/employer relationships and the existence of workers’ councils and labor unions;

	•	difficulties in staffing and managing foreign operations;

	•	challenges associated with joint venture relationships, including dependence on our joint venture partners;

	•	difficulties in implementing and maintaining adequate internal controls;

	•	longer payment cycles, different accounting practices, and greater problems in collecting accounts receivable;

	•	potentially adverse tax consequences, including local taxation of our fees or of transactions on our websites;

	•	higher telecommunications and Internet service provider costs;

	•	different and more stringent user protection, data protection, privacy and other laws;

	•	seasonal reductions in business activity;

	•	expenses associated with localizing our products, including offering customers the ability to transact business in the local currency;


	•	profit repatriation restrictions, foreign currency exchange restrictions, and exchange rate fluctuations;

	•	volatility in a specific country’s or region’s political, economic or military conditions; and

	•	differing intellectual property laws.

We maintain a portion of Shopping.com’s research and development facilities and personnel in Israel, and in January 2008 we acquired Fraud Sciences Ltd., an Israeli company. As a result, political, economic and military conditions in Israel affect those operations. The future of peace efforts between Israel and its neighboring countries remains uncertain. Increased hostilities or terrorism within Israel or armed hostilities between Israel and neighboring states could make it more difficult for us to continue our operations in Israel, which could increase our costs. In addition, many of our employees in Israel could be required to serve in the military for extended periods of time under emergency circumstances. Our Israeli operations could be disrupted by the absence of employees due to military service, which could adversely affect our business.

There
are many risks associated with our international
operations.

Our international expansion has been rapid and our international
business, especially in Germany and the U.K., has also become
critical to our revenues and profits. Net revenues outside the
U.S. accounted for approximately 51% and 54%, respectively,
of our net revenues in fiscal years 2007 and 2008. Expansion
into international markets requires management attention and
resources and requires us to localize our services to conform to
local cultures, standards, and policies. The commercial,
Internet, and transportation infrastructure in lesser-developed
countries may make it more difficult for us to replicate our
traditional Marketplace business model. In many countries, we
compete with local companies that understand the local market
better than we do, and we may not benefit from first-to-market
advantages. We may not be successful in expanding into
particular international markets or in generating revenues from
foreign operations. For example, in 2002 we withdrew our eBay
marketplace offering from the Japanese market, and in 2007 we
contributed our business in China to a joint venture with a
local Chinese company. Even if we are successful in developing
new markets, we often expect the costs of operating new sites to
exceed our net revenues for at least 12 months in most
countries.

As we continue to expand internationally, including through the
expansion of PayPal, Skype, Shopping.com, and our classified
businesses, we are increasingly subject to risks of doing
business internationally, including the following:


	•	strong local competitors;

	•	regulatory requirements, including regulation of Internet services, communications, auctioneering, professional selling, distance selling, privacy and data protection, banking, and money transmitting, that may limit or prevent the offering of our services in some jurisdictions, prevent enforceable agreements between sellers and buyers, prohibit the listing of certain categories of goods, require product changes, require special licensure, subject us to various taxes, penalties or audits, or limit the transfer of information between us and our affiliates;

	•	greater liability or legal uncertainty regarding our liability for the listings and other content provided by our users, including uncertainty as a result of legal systems that are less developed with respect to the Internet, unique local laws, conflicting court decisions and lack of clear precedent or applicable law;

	•	cultural ambivalence towards, or non-acceptance of, online trading;

	•	laws and business practices that favor local competitors or prohibit foreign ownership of certain businesses;

	•	difficulties in integrating with local payment providers, including banks, credit and debit card networks, and electronic fund transfer systems or with the local telecommunications infrastructure;

	•	differing levels of retail distribution, shipping, communications, and Internet infrastructures;

	•	different employee/employer relationships and the existence of workers’ councils and labor unions;

	•	difficulties in staffing and managing foreign operations;

	•	challenges associated with joint venture relationships, including dependence on our joint venture partners;

	•	difficulties in implementing and maintaining adequate internal controls;

	•	longer payment cycles, different accounting practices, and greater problems in collecting accounts receivable;

	•	potentially adverse tax consequences, including local taxation of our fees or of transactions on our websites;

	•	higher telecommunications and Internet service provider costs;

	•	different and more stringent user protection, data protection, privacy and other laws;

	•	seasonal reductions in business activity;

	•	expenses associated with localizing our products, including offering customers the ability to transact business in the local currency;


	•	profit repatriation restrictions, foreign currency exchange restrictions, and exchange rate fluctuations;

	•	volatility in a specific country’s or region’s political, economic or military conditions; and

	•	differing intellectual property laws.

Some of these factors may cause our international costs of doing
business to exceed our comparable domestic costs. As we expand
our international operations and have additional portions of our
international revenues denominated in foreign currencies, we
also could become subject to increased difficulties in
collecting accounts receivable, repatriating money without
adverse tax consequences, and risks relating to foreign currency
exchange rate fluctuations. The impact of currency exchange rate
fluctuations is discussed in more detail under “We are
exposed to fluctuations in currency exchange rates and interest
rates,” above.

In addition, we conduct certain functions, including product
development, customer support and other operations, in regions
outside the U.S., particularly in India and China. We are
subject to both U.S. and local laws and regulations
applicable to our offshore activities, and any factors which
reduce the anticipated benefits, including cost efficiencies and
productivity improvements, associated with providing these
functions outside of the U.S. could adversely affect our
business.

We are continuing to expand PayPal’s services
internationally. In some countries, expansion of PayPal’s
business may require a close commercial relationship with one or
more local banks, a shared ownership interest with a local
entity or registration as a bank under local law. Such
requirements may reduce our profitability or limit the scope of
our activities in particular countries. Any limitation on our
ability to expand PayPal internationally could harm our business.

We maintain a portion of Shopping.com’s research and
development facilities and personnel in Israel, and in January
2008 we acquired Fraud Sciences Ltd., an Israeli company. As a
result, political, economic and military conditions in Israel
affect those operations. The future of peace efforts between
Israel and its neighboring countries remains uncertain.
Increased hostilities or terrorism within Israel or armed
hostilities between Israel and neighboring states could make it
more difficult for us to continue our operations in Israel,
which could increase our costs. In addition, many of our
employees in Israel could be required to serve in the military
for extended periods of time under emergency circumstances. Our
Israeli operations could be disrupted by the absence of
employees due to military service, which could adversely affect
our business.

This excerpt taken from the EBAY 10-Q filed Oct 23, 2008.

There are many risks associated with our international operations.

Our international expansion has been rapid and our international business, especially in Germany and the U.K., has also become critical to our revenues and profits. Net revenues outside the U.S. accounted for approximately 51% and 53%, respectively, of our net revenues in fiscal year 2007 and the first nine months of 2008. Expansion into international markets requires management attention and resources and requires us to localize our services to conform to local cultures, standards, and policies. The commercial, Internet, and transportation infrastructure in lesser-developed countries may make it more difficult for us to replicate our traditional Marketplace business model. In many countries, we compete with local companies that understand the local market better than we do, and we may not benefit from first-to-market advantages. We may not be successful in expanding into particular international markets or in generating revenues from foreign operations. For example, in 2002 we withdrew our eBay marketplace offering from the Japanese market, and in 2007 we contributed our business in China to a joint venture with a local Chinese company. Even if we are successful in developing new markets, we often expect the costs of operating new sites to exceed our net revenues for at least 12 months in most countries.


	•	strong local competitors;

	•	regulatory requirements, including regulation of Internet services, communications, auctioneering, professional selling, distance selling, privacy and data protection, banking, and money transmitting, that may limit or prevent the offering of our services in some jurisdictions, prevent enforceable agreements between sellers and buyers, prohibit the listing of certain categories of goods, require product changes, require special licensure, subject us to various taxes, penalties or audits, or limit the transfer of information between us and our affiliates;

	•	greater liability or legal uncertainty regarding our liability for the listings and other content provided by our users, including uncertainty as a result of legal systems that are less developed with respect to the Internet, unique local laws, conflicting court decisions and lack of clear precedent or applicable law;

	•	cultural ambivalence towards, or non-acceptance of, online trading;

	•	laws and business practices that favor local competitors or prohibit foreign ownership of certain businesses;

	•	difficulties in integrating with local payment providers, including banks, credit and debit card networks, and electronic fund transfer systems or with the local telecommunications infrastructure;

	•	differing levels of retail distribution, shipping, communications, and Internet infrastructures;

	•	different employee/employer relationships and the existence of workers’ councils and labor unions;

	•	difficulties in staffing and managing foreign operations;

	•	challenges associated with joint venture relationships, including dependence on our joint venture partners;

	•	difficulties in implementing and maintaining adequate internal controls;

	•	longer payment cycles, different accounting practices, and greater problems in collecting accounts receivable;

	•	potentially adverse tax consequences, including local taxation of our fees or of transactions on our websites;


	•	higher telecommunications and Internet service provider costs;

	•	different and more stringent user protection, data protection, privacy and other laws;

	•	seasonal reductions in business activity;

	•	expenses associated with localizing our products, including offering customers the ability to transact business in the local currency;

	•	profit repatriation restrictions, foreign currency exchange restrictions, and exchange rate fluctuations;

	•	volatility in a specific country’s or region’s political, economic or military conditions; and

	•	differing intellectual property laws.

We maintain a portion of Shopping.com’s research and development facilities and personnel in Israel, and in January 2008 we acquired Fraud Sciences Ltd., an Israeli company. As a result, political, economic and military conditions in Israel affect those operations. The future of peace efforts between Israel and its neighboring countries remains uncertain. Increased hostilities or terrorism within Israel or armed hostilities between Israel and neighboring states could make it more difficult for us to continue our operations in Israel, which could increase our costs. In addition, many of our employees in Israel could be required to serve in the military for extended periods of time under emergency circumstances. Our Israeli operations could be disrupted by the absence of employees due to military service, which could adversely affect our business.

This excerpt taken from the EBAY 10-Q filed Jul 24, 2008.

There are many risks associated with our international operations.

conform to local cultures, standards, and policies. The commercial, Internet, and transportation infrastructure in lesser-developed countries may make it more difficult for us to replicate our traditional Marketplace business model. In many countries, we compete with local companies that understand the local market better than we do, and we may not benefit from first-to-market advantages. We may not be successful in expanding into particular international markets or in generating revenues from foreign operations. For example, in 2002 we withdrew our eBay marketplace offering from the Japanese market, and in 2007 we contributed our business in China to a joint venture with a local Chinese company. Even if we are successful in developing new markets, we often expect the costs of operating new sites to exceed our net revenues for at least 12 months in most countries.


	•	strong local competitors;

	•	regulatory requirements, including regulation of Internet services, communications, auctioneering, professional selling, distance selling, privacy and data protection, banking, and money transmitting, that may limit or prevent the offering of our services in some jurisdictions, prevent enforceable agreements between sellers and buyers, prohibit the listing of certain categories of goods, require product changes, require special licensure, subject us to various taxes, penalties or audits, or limit the transfer of information between us and our affiliates;

	•	greater liability or legal uncertainty regarding our liability for the listings and other content provided by our users, including uncertainty as a result of legal systems that are less developed with respect to the Internet, unique local laws, conflicting court decisions and lack of clear precedent or applicable law;

	•	cultural ambivalence towards, or non-acceptance of, online trading;

	•	laws and business practices that favor local competitors or prohibit foreign ownership of certain businesses;

	•	difficulties in integrating with local payment providers, including banks, credit and debit card networks, and electronic fund transfer systems or with the local telecommunications infrastructure;

	•	differing levels of retail distribution, shipping, communications, and Internet infrastructures;

	•	different employee/employer relationships and the existence of workers’ councils and labor unions;

	•	difficulties in staffing and managing foreign operations;

	•	challenges associated with joint venture relationships, including dependence on our joint venture partners;

	•	difficulties in implementing and maintaining adequate internal controls;

	•	longer payment cycles, different accounting practices, and greater problems in collecting accounts receivable;

	•	potentially adverse tax consequences, including local taxation of our fees or of transactions on our websites;

	•	higher telecommunications and Internet service provider costs;

	•	different and more stringent user protection, data protection, privacy and other laws;

	•	seasonal reductions in business activity;

	•	expenses associated with localizing our products, including offering customers the ability to transact business in the local currency;

	•	profit repatriation restrictions, foreign currency exchange restrictions, and exchange rate fluctuations;

	•	volatility in a specific country’s or region’s political, economic or military conditions; and

	•	differing intellectual property laws.

We maintain a portion of Shopping.com’s research and development facilities and personnel in Israel, and in January 2008 we acquired Fraud Sciences Ltd., an Israeli company. As a result, political, economic and military conditions in Israel affect those operations. The future of peace efforts between Israel and its neighboring countries remains uncertain. Increased hostilities or terrorism within Israel or armed hostilities between Israel and neighboring states could make it more difficult for us to continue our operations in Israel, which could increase our costs. In addition, many of our employees in Israel could be required to serve in the military for extended periods of time under emergency circumstances. Our Israeli operations could be disrupted by the absence of employees due to military service, which could adversely affect our business.

This excerpt taken from the EBAY 10-Q filed Apr 24, 2008.

There are many risks associated with our international operations.

Our international expansion has been rapid and our international business, especially in Germany and the U.K., has also become critical to our revenues and profits. Net revenues outside the U.S. accounted for approximately 51% and 53%, respectively, of our net revenues in fiscal year 2007 and the first quarter of 2008. Expansion into international markets requires management attention and resources and requires us to localize our services to conform to local cultures, standards, and policies. The commercial, Internet, and transportation infrastructure in lesser-developed countries may make it more difficult for us to replicate our traditional Marketplace business model. In many countries, we compete with local companies that understand the local market better than we do, and we may not benefit from first-to-market advantages. We may not be successful in expanding into particular international markets or in generating revenues from foreign operations. For example, in 2002 we withdrew our eBay marketplace offering from the Japanese market, and in 2007 we contributed our business in China to a joint venture with a local Chinese company. Even if we are successful in developing new markets, we often expect the costs of operating new sites to exceed our net revenues for at least 12 months in most countries.


	•	strong local competitors;

	•	regulatory requirements, including regulation of Internet services, communications, auctioneering, professional selling, distance selling, privacy and data protection, banking, and money transmitting, that may limit or prevent the offering of our services in some jurisdictions, prevent enforceable agreements between sellers and buyers, prohibit the listing of certain categories of goods, require product changes, require special licensure, subject us to various taxes, penalties or audits, or limit the transfer of information between eBay and our affiliates;

	•	greater liability or legal uncertainty regarding our liability for the listings and other content provided by our users, including uncertainty as a result of legal systems that are less developed with respect to the Internet, unique local laws, conflicting court decisions and lack of clear precedent or applicable law;

	•	difficulties in integrating with local payment providers, including banks, credit and debit card associations, and electronic fund transfer systems or with the local telecommunications infrastructure;

	•	differing levels of retail distribution, shipping, communications, and Internet infrastructures;

	•	different employee/employer relationships and the existence of workers’ councils and labor unions;

	•	difficulties in staffing and managing foreign operations;

	•	challenges associated with joint venture relationships, including dependence on our joint venture partners;

	•	difficulties in implementing and maintaining adequate internal controls;

	•	longer payment cycles, different accounting practices, and greater problems in collecting accounts receivable;

	•	potentially adverse tax consequences, including local taxation of our fees or of transactions on our websites;

	•	higher telecommunications and Internet service provider costs;

	•	different and more stringent user protection, data protection, privacy and other laws;

	•	cultural ambivalence towards, or non-acceptance of, online trading;

	•	seasonal reductions in business activity;

	•	expenses associated with localizing our products, including offering customers the ability to transact business in the local currency;

	•	laws and business practices that favor local competitors or prohibit foreign ownership of certain businesses;


	•	profit repatriation restrictions, foreign currency exchange restrictions, and exchange rate fluctuations;

	•	volatility in a specific country’s or region’s political, economic or military conditions; and

	•	differing intellectual property laws.

We maintain a portion of Shopping.com’s research and development facilities and personnel in Israel, and in January 2008 we acquired Fraud Sciences Ltd., an Israeli company. As a result, political, economic and military conditions in Israel affect those operations. The future of peace efforts between Israel and its neighboring countries remains uncertain. Increased hostilities or terrorism within Israel or armed hostilities between Israel and neighboring states could make it more difficult for us to continue our operations in Israel, which could increase our costs. In addition, many of our employees in Israel could be required to serve in the military for extended periods of time under emergency circumstances. Our Israeli operations could be disrupted by the absence of employees due to military service, which could adversely affect our business.

This excerpt taken from the EBAY 10-Q filed Apr 24, 2008.

There are many risks associated with our international operations.

Our international expansion has been rapid and our international business, especially in Germany and the U.K., has also become critical to our revenues and profits. Net revenues outside the U.S. accounted for approximately 51% and 53%, respectively, of our net revenues in fiscal year 2007 and the first quarter of 2008. Expansion into international markets requires management attention and resources and requires us to localize our services to conform to local cultures, standards, and policies. The commercial, Internet, and transportation infrastructure in lesser-developed countries may make it more difficult for us to replicate our traditional Marketplace business model. In many countries, we compete with local companies that understand the local market better than we do, and we may not benefit from first-to-market advantages. We may not be successful in expanding into particular international markets or in generating revenues from foreign operations. For example, in 2002 we withdrew our eBay marketplace offering from the Japanese market, and in 2007 we contributed our business in China to a joint venture with a local Chinese company. Even if we are successful in developing new markets, we often expect the costs of operating new sites to exceed our net revenues for at least 12 months in most countries.


	•	strong local competitors;

	•	regulatory requirements, including regulation of Internet services, communications, auctioneering, professional selling, distance selling, privacy and data protection, banking, and money transmitting, that may limit or prevent the offering of our services in some jurisdictions, prevent enforceable agreements between sellers and buyers, prohibit the listing of certain categories of goods, require product changes, require special licensure, subject us to various taxes, penalties or audits, or limit the transfer of information between eBay and our affiliates;

	•	greater liability or legal uncertainty regarding our liability for the listings and other content provided by our users, including uncertainty as a result of legal systems that are less developed with respect to the Internet, unique local laws, conflicting court decisions and lack of clear precedent or applicable law;

	•	difficulties in integrating with local payment providers, including banks, credit and debit card associations, and electronic fund transfer systems or with the local telecommunications infrastructure;

	•	differing levels of retail distribution, shipping, communications, and Internet infrastructures;

	•	different employee/employer relationships and the existence of workers’ councils and labor unions;

	•	difficulties in staffing and managing foreign operations;

	•	challenges associated with joint venture relationships, including dependence on our joint venture partners;

	•	difficulties in implementing and maintaining adequate internal controls;

	•	longer payment cycles, different accounting practices, and greater problems in collecting accounts receivable;

	•	potentially adverse tax consequences, including local taxation of our fees or of transactions on our websites;

	•	higher telecommunications and Internet service provider costs;

	•	different and more stringent user protection, data protection, privacy and other laws;

	•	cultural ambivalence towards, or non-acceptance of, online trading;

	•	seasonal reductions in business activity;

	•	expenses associated with localizing our products, including offering customers the ability to transact business in the local currency;

	•	laws and business practices that favor local competitors or prohibit foreign ownership of certain businesses;


	•	profit repatriation restrictions, foreign currency exchange restrictions, and exchange rate fluctuations;

	•	volatility in a specific country’s or region’s political, economic or military conditions; and

	•	differing intellectual property laws.

We maintain a portion of Shopping.com’s research and development facilities and personnel in Israel, and in January 2008 we acquired Fraud Sciences Ltd., an Israeli company. As a result, political, economic and military conditions in Israel affect those operations. The future of peace efforts between Israel and its neighboring countries remains uncertain. Increased hostilities or terrorism within Israel or armed hostilities between Israel and neighboring states could make it more difficult for us to continue our operations in Israel, which could increase our costs. In addition, many of our employees in Israel could be required to serve in the military for extended periods of time under emergency circumstances. Our Israeli operations could be disrupted by the absence of employees due to military service, which could adversely affect our business.

EXCERPTS ON THIS PAGE:

10-Q	Apr 28, 2009

10-K (2 sections)	Feb 20, 2009

10-Q	Oct 23, 2008

10-Q	Jul 24, 2008

10-Q	Apr 24, 2008

10-Q	Apr 24, 2008

EBay (EBAY)

EBAY » Topics » There are many risks associated with our international operations.

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