1065088--2/28/2007--EBAY

related topics

{system, service, information}

{regulation, government, change}

{operation, international, foreign}

{property, intellectual, protect}

{product, market, service}

{acquisition, growth, future}

{financial, litigation, operation}

{personnel, key, retain}

{tax, income, asset}

{stock, price, operating}

Our operating results may fluctuate. We may not maintain our level of profitability or rates of growth. There are many risks associated with our international operations. We are exposed to fluctuations in currency exchange rates. We are subject to patent litigation. Government inquiries may lead to charges or penalties. The listing or sale by our users of pirated or counterfeit items may harm our business. We are subject to general litigation and regulatory disputes. Acquisitions could result in operating difficulties, dilution, and other harmful consequences. System failures could harm our business. Our growth will depend on our ability to develop our brands, and these efforts may be costly. Our business and users may be subject to sales tax and other taxes. Failure to deal effectively with fraudulent transactions and customer disputes would increase our loss rate and harm our business. The current regulatory environment for Voice over Internet Protocol (VoIP) is uncertain, and Skype s business could be harmed by new regulations or the application of existing regulations to its products. Skype depends on key technology that is licensed from third parties. Our businesses depend on continued and unimpeded access to the Internet. Internet service providers may be able to block, degrade, or charge us for our users additional fees for our offerings. Changes to credit card association fees, rules, or practices could harm PayPal s business. Changes in PayPal s funding mix could adversely affect PayPal s results. If PayPal were found to be subject to or in violation of any U.S. laws or regulations governing banking, money transmission, or electronic funds transfers, it could be subject to liability and forced to change its business practices. PayPal s status under banking or financial services laws or other laws in markets outside the U.S. is unclear. PayPal s failure to manage customer funds properly would harm its business. New and existing regulations could harm our business. Our tickets business is subject to regulatory, competitive, and other risks that could harm this business. Our business is subject to online security risks, including security breaches and identity theft. Our failure to manage growth could harm our business. Use of our services for illegal purposes could harm our business. We are subject to risks associated with information disseminated through our service. Customer complaints or negative publicity about our customer service could diminish use of our services. Problems with third parties who provide services to us or to our users could harm our business. We depend on key personnel. Our industry is intensely competitive, and other companies or governmental agencies may allege that our behavior is anti-competitive. Our operations in China are subject to risks and uncertainties relating to the laws and regulations of the People s Republic of China. Our business may be adversely affected by factors that cause our users to spend less time on our websites, including seasonal factors, national events and increased usage of other websites. We depend on the continued growth of online commerce and communications. Our business depends on the development and maintenance of the Internet infrastructure. We may be unable to protect or enforce our own intellectual property rights adequately.

Full 10-K form ▸

1065088--2/28/2007--EBAY_INC