Just when I was beginning to think more highly of the French because they elected such an awesome President, the French government has made another decision which makes them look like fools.

The French government allows two types of auction businesses. One is a traditional auction house, which operate under orders from the sellers to sell their goods to the highest bidder. The second type is an auction brokerage, where the business does not intervene in the business between the buyer and the seller.

The French government claims that eBay France is the first type of business and eBay claims that it is the second type of business. In an attempt to muscle eBay, the French regulatory authority is attempting to shut down eBay France for operating without the proper permit.

The French government needs to sharpen their understanding of eBay and of the Internet in general. They need to understand that they are a small regional government with very little power to change how the Internet works. eBay could easily set up eBay Switzerland and transfer all business from eBay France there — effectively cutting the luddite French government out of the picture entirely.

The French government has the power of legal coercion, but eBay is backed by the forces of free-market economics. Government is powerful, but economics is a tireless process for change. In the long run, no government can withstand the relentless onslaught of market forces.